A group of US lawmakers from California are asking for a federal investigation into what role Goldman Sachs Group Inc. might have played in the collapse of Silicon Valley Bank.
(Bloomberg) — A group of US lawmakers from California are asking for a federal investigation into what role Goldman Sachs Group Inc. might have played in the collapse of Silicon Valley Bank.
A letter Friday from 20 Democratic House members — led by Representative Adam Schiff — asks the Justice Department, the Securities and Exchange Commission and the Federal Deposit Insurance Corp. to include the New York-based investment bank in their preliminary investigations.
The request follows disclosures that Goldman Sachs served both as an adviser to the failed bank in late February and as the buyer of a $21 billion securities portfolio.
“Goldman Sachs stands to be paid more than $100 million for its role in a bond purchase that ultimately failed to save SVB from collapse,” the lawmakers said, citing an unconfirmed New York Times report. “As Goldman Sachs is poised to profit from SVB’s failure, we strongly urge you to analyze whether Goldman Sachs operated at ‘arm’s length’ in their role as adviser for SVB.”
A representative for Goldman Sachs didn’t immediately respond to a request for comment. Silicon Valley Bank, in a disclosure Tuesday, said the sale was “at negotiated prices.”
–With assistance from Sridhar Natarajan.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.