The SEC and Federal Reserve are investigating Goldman Sachs’ role in purchasing $21 billion of SVB’s securities portfolio, as well as its role in advising SVB in raising capital. Goldman Sachs is cooperating with and providing information to various governmental bodies, and the Department of Justice has issued a subpoena.
Key Takeaways
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The SEC and Federal Reserve are reportedly seeking documents into Goldman Sachs’ role in purchasing $21 billion of SVB’s securities portfolio as the hamstrung regional bank was looking to shore up cash and find a potential buyer, as well as Goldman’s role in allegedly advising SVB in raising capital, sources told the Journal.
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Federal investigators will also probe whether Goldman’s trading and banking divisions were improperly communicating, and whether the banking behemoth advised SVB to sell its portfolio—SVB executives reportedly decided to sell its securities to Goldman without seeking other buyers out of fear of market repercussions.
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Goldman Sachs did not confirm the investigation, though a spokesperson told Forbes it had informed SVB before the sale of its securities portfolio that it would not act as its advisor in the sale and that SVB should hire a third-party financial advisor.
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The spokesperson said Goldman Sachs is “cooperating with and providing information to various governmental bodies in connection with their investigations.”
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The Department of Justice also issued Goldman Sachs a subpoena in its separate investigation into SVB’s collapse, sources told the Journal.