Modelling A.I. in Economics

Did Goldman Sachs Help Bring Down Silicon Valley Bank?

June 15, 2023 - The Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs's role in Silicon Valley Bank's (SVB) final days.

The investigation is reportedly focused on Goldman's role in buying a $1.8 billion portfolio of securities from SVB just weeks before the bank filed for bankruptcy. The Justice Department is also reportedly investigating SVB's collapse.

SVB, a leading lender to technology companies, filed for bankruptcy in March after it was unable to raise enough capital to shore up its balance sheet. The bank's collapse was a major blow to the technology industry, which had come to rely on SVB for financing.

Goldman Sachs has said that it is cooperating with the investigations into SVB. The bank has also said that it believes its actions were appropriate and that it did not violate any laws.

The Fed and SEC investigations are still in their early stages. It is not yet clear what, if any, wrongdoing Goldman Sachs may have committed.

The collapse of SVB has raised concerns about the health of the financial system. The bank's failure was the first major bankruptcy of a major financial institution since the 2008 financial crisis.

The Fed and SEC investigations are part of a broader effort to ensure that the financial system is stable and that banks are not taking on too much risk. The investigations are also a sign that regulators are taking a closer look at the activities of Wall Street banks.

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