Fed, SEC investigate Goldman Sachs over Silicon Valley Bank's securities portfolio: Report
Goldman Sachs is currently facing scrutiny from the Federal Reserve and Securities and Exchange Commission (SEC) regarding its involvement in the purchase of Silicon Valley Bank's securities portfolio prior to the bank's collapse, The Wall Street Journal has reported, citing sources familiar with the matter.
Breaking: Goldman Sachs is being investigated by the Federal Reserve and the Securities and Exchange Commission over its role in Silicon Valley Bank’s final days https://t.co/L7buF8TfvX
According to the report, both agencies are investigating Goldman Sachs' actions during its failed capital raise before the collapse of SVB. The Justice Department has also reportedly issued a subpoena to Goldman Sachs as part of its investigation into SVB.
Insiders have also allegedly reported that the Federal Reserve and SEC are particularly interested in obtaining documents relating to Goldman Sachs' dual role as buyer of SVB's securities portfolio and the advisor for the bank's capital raise. The agencies are reportedly investigating whether there were any improper communications between Goldman's investment banking division and its trading division regarding the sale of the portfolio.
In response, Goldman has shared that it is “cooperating with and providing information to various governmental bodies in connection with their investigations and inquiries into SVB, including the firm’s business with SVB in or around March 2023.”
In the final days leading to the collapse of SVB, Goldman Sachs was reportedly hired to assist the bank in raising capital. At the same time, its trading division purchased "SVB's $21 billion portfolio of available-for-sale debt securities at a discount." As WSJ reported, bankers and finanicallawyers consider it
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