Justin Sullivan
The Federal Reserve and the U.S. Securities and Exchange Commission are looking into Goldman Sachs’s (NYSE:GS) role in buying a portfolio of securities from Silicon Valley Bank while also working to raise capital for the bank before its collapse, The Wall Street Journal reported, citing people familiar with the matter.
The U.S. Department of Justice also subpoenaed Goldman Sachs (GS) as part of its investigation into SVB. The SEC and Justice Department are investigating the bank’s failure, and the inquiries into Goldman Sachs’s (GS) role are part of a broader investigation, the Journal reported.
The Fed and the SEC asked for documentation showing Goldman Sachs’s (GS) role as both a buyer of SVB’s securities holdings and as an adviser on the capital raise for SVB. Officials want to see if Goldman Sachs’s (GS) investment bank and its capital markets group improperly communicated with each other, the Journal reported.