Goldman Sachs Group Under Investigation for Failed SVB Deal

In 2023, the U.S. banking sector has been under a lot of stress. The failure of several big banks brought trouble all over the world. In particular, the loss of the Silicon Valley Bank (SVB) also caused problems for other banks. Now, months after the SVB crash, the U.S. government is looking into Goldman Sachs Group.

In March 2023, Silicon Valley Bank lost money when it sold a $24 billion stock to Goldman Sachs. After this, the bank asked Goldman to help it raise more than $2.2 billion to make up the difference. But Goldman Sachs couldn’t finish the deal, leading to the bank bankrupting.

This made many other banks and financial companies criticize Goldman Sachs Group for not getting enough money ahead of time and instead making the market worry. The failed transaction caused a lot of trouble in the area banking system of the United States. So, U.S. government agencies are now looking into what part Goldman Sachs played in the deal.

Goldman Sachs Group has cooperated with the investigation

Twenty Democratic House members from California, led by Senate candidate Adam Schiff, have asked the Justice Department, the Securities and Exchange Commission, and the Federal Deposit Insurance Corp. to look into Goldman Sachs’ role in the failure of SVB.

Lawmakers have been begging for a federal investigation to find out if the New York firm had anything to do with the failed bank and to include the company in the preliminary studies.

Also, it needs to be clarified if the government would blame the bank for what happened. Still, reports say that Goldman Sachs Group is helping the government by giving them the information necessary for the SVB probes. This includes their part in the failed deal in March, as the company said in a statement with the government.