Goldman Sachs is currently under investigation by US authorities.
AFP reported on May 5 that US authorities are investigating Goldman Sachs' activities with Silicon Valley Bank (SVB), related to the events surrounding SVB's collapse.
According to a securities filing released by Goldman Sachs on May 4, the bank is “cooperating with and providing information to various government agencies” about its actions against SVB in March.
Goldman Sachs has been criticized for its multiple roles in connection with SVB, including advising SVB and buying debt in a deal that later played a central role in SVB's collapse.
How SVB, the number one bank for many US startups, went bankrupt in 48 hours?
Regulators took over SVB on March 10, after many customers rushed to withdraw money when they learned that the bank had lost $1.8 billion in a $21 billion stock sale.
The market viewed the disclosure of the loss as a sign that SVB was desperate to raise cash to meet liquidity needs. In a press release on March 8, SVB said it had listed Goldman Sachs in its capital raising plan.
In a new securities filing, Goldman Sachs said the government's investigation includes "the timing of SVB's involvement with the company in support of its proposed capital increase and SVB's sale of shares to the company."
The investigation was launched after a proposal by 20 House Democrats to ask the agency to determine whether Goldman Sachs "acted independently as an adviser to SVB."
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