The US authorities are investigating Goldman Sachs over its work with Silicon Valley Bank and its connections with the events that led to collapse of the California-based bank, news agency AFP reported.
Goldman has been criticized over its multiple roles with SVB, in which it was both advising the California bank and purchasing distressed debt in a deal that ultimately played a central role in SVB's collapse, according to the report.
In Thursday's filing, Goldman said the government probes include "when SVB engaged the firm to assist with a proposed capital raise and SVB sold the firm a portfolio of securities."
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Silicon Valley Bank was shut down by a California regulator. As per updates, after the closure of SVB, the Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver.
SVB Financial Group ran one of the largest American commercial banks. The company reportedly announced a $1.75 billion-worth share sale that did not go well with the Wall Street, leading to a massive sell-off in the group’s shares.
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