Congresspeople have called for a federal investigation into the role Goldman Sachs, $GS, played in the collapse of Silicon Valley Bank

Congresspeople have called for a federal investigation into the role Goldman Sachs, $GS, played in the collapse of Silicon Valley Bank, and urged regulators to examine whether the profits handling a $21 billion trade for Silicon Valley bank should be repossessed.

“As Goldman Sachs is poised to profit from SVB’s failure, we strongly urge you to analyse whether Goldman Sachs operated at ‘arm’s length’ in their role as adviser for SVB,” per their letter.

"We support your efforts to launch an investigation and hope that unlike 2008, we hold bank executives accountable by ensuring they are held responsible — the burden of their actions should not land on the shoulders of consumers or taxpayers.”

Silicon Valley Bank sold the portfolio of $21.45bn worth of securities to Goldman “at negotiated prices."

Goldman Sachs, $GS, bought more than $21 billion worth of securities sold by Silicon Valley Bank last week, a transaction that was just before the collapse of Silicon Valley Bank, per FT.

A $1.8 billion loss from a securities sale from Silicon Valley Bank kicked off market panic about California lender Silicon Valley Bank last week, per BI.

Silicon Valley Bank said last week: it had "completed the sale of substantially all of its available for sale securities portfolio" for $21 billion.

Silicon Valley Bank received approximately $21.45 billion for a portfolio of available for sale securities with a book value of approximately $23.97 billion, and that it was sold to Goldman "at negotiated prices."

After Silicon Valley Bank’s seizure, Goldman was also involved in the trading of around $700 million in bonds held by SVB Financial.

Read more: https://unusualwhales.com/news/goldman-sachs-gs-bought-more-than-21-billion-worth-of-securities-sold-by-silicon-valley-bank-last-week-a-transaction-that-was-just-before-the-collapse-of-silicon-valley-bank