2023-05-04 08:36:26 ET
Goldman Sachs ( NYSE: GS ) is under review by various government authorities for its role in Silicon Valley Bank's unsuccessful attempts to raise funds in March, the firm disclosed in a filing .
The Wall Street bank said late Wednesday it's cooperating with and providing information to various government bodies in their investigations into Silicon Valley Bank, including when it assisted with a proposed capital raise and acquired a portfolio of securities from SVB.
On March 8, SVB Financial ( OTC:SIVBQ ), parent of Silicon Valley Bank, disclosed that it sold substantially all of its available for sale securities portfolio to Goldman ( GS ) at an after-tax loss of ~$1.8B. It also announced plans to offer up to $1.25B of its stock and $500M of depositary shares, but ultimately, SIVB failed to get enough buyers.
Lawmakers from California were seeking a federal probe into whether Goldman ( GS ) may have had a role in Silicon Valley Bank's collapse, Bloomberg reported . The 20 Democratic House members requested that the Securities and Exchange Commission, the Justice Department, and the Federal Deposit Insurance Crop. include the Wall Street bank in their preliminary investigations.
Silicon Valley Bank's collapse then sparked fears over regional, especially those focused on the tech sector and based on the West Coast.
Early this week, JPMorgan Chase ( JPM ) agreed to acquire First Republic Bank ( OTCPK:FRCB ) in an FDIC-brokered deal , after the regional bank's stock fell more than 90% YTD. Late Wednesday, PacWest Bancorp ( PACW ) confirmed that it's considering options, including the sale of the bank.
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Goldman Sachs under government review for role in Silicon Valley Bank