The Fed and SEC are focusing on obtaining pertinent documents regarding Goldman Sachs' involvement in both purchasing Silicon Valley Bank's securities portfolio and providing advisory services.
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 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 uncommon for banks to simultaneously act as both an adviser and a buyer of a company's assets, except in times of financial distress.
Sources familiar with the matter have also reportedly disclosed that Goldman advised SVB executives to"sell part or all of its securities portfolio" before raising capital to demonstrate the need for funding. This advice was reiterated by Greg Becker, SVB's former CEO, during his testimony before the Senate Banking Committee.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WSJ News Exclusive | Fed, SEC Probing Goldman Sachs’s Role in SVB’s Final DaysBreaking: 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
Read more »
Goldman Sachs reportedly probed by Fed, SEC over Silicon Valley Bank collapseGoldman Sachs is being scrutinized for buying up Silicon Valley Bank’s debt while advising it to raise capital, according to a report.
Read more »
Goldman Sachs' discontented partners, according to The Wall Street JournalInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Stock market outlook: Goldman Sachs raises S&P 500 target amid AI boomGoldman Sachs raises its S&P 500 price target for the year as AI booms and the 2023 rally broadens out beyond biggest tech names
Read more »
Oracle's biggest critic, Goldman Sachs, admits it was wrongInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Elon Musk's move to not pay Twitter's rent is a headache for Goldman SachsElon Musk's decision to not pay rent on Twitter's offices is adding to commercial mortgage headaches at Goldman Sachs
Read more »