Silicon Valley Bank sinking: Goldman Sachs targeted by federal investigation

When Silicon Valley Bank (SVB) collapsed, the crypto industry was shaken to its foundations. Indeed, SVB was not just another financial institution. It represented one of the few safe havens in the United States for crypto businesses at a time when the majority of banks shunned this sector because of the risks associated with changing regulations. In fact, his disappearance left a great void and many unanswered questions. In this context, the involvement of Goldman Sachs in the fall of SVB gives rise to many speculations.

Goldman Sachs suspected of disloyalty in its relations with the SVB?

Could the investment bank Goldman Sachs soon find itself facing American justice? This is a question that can legitimately be asked in view of recent developments concerning the SVB and its sinking.

The bank is suspected of being involved in the bankruptcy of SVB and would be targeted by an investigation by US authorities. Investigations, launched by the US Federal Reserve, the SEC and the Department of Justice.

According to several sources, regulators are seeking to elucidate possible misconduct by Goldman Sachs in relations with SVB. The investigations relate in particular to a portfolio of SVB securities acquired by Goldman Sachs.

The latter would also have provided consultancy services to the SVB. A step taken before the fall of the latter and intended to help it raise funds. This, to face the difficulties she already knew. For the moment, it seems that these allegations are not supported by any evidence. But Goldman Sachs reacted to the allegations.

Goldman Sachs does not blame itself and will collaborate with the authorities

These accusations obviously did not leave Goldman Sachs indifferent. The company reacted to this by rejecting them altogether. According to her statements, she would have clearly specified to SVB that she was not advising her on her fundraising procedure. On the contrary, it explicitly recommended that he use the services of a third-party financial adviser.

Never mind, Goldman Sachs has indicated its commitment to cooperate with the American public authorities. It intends to provide them with all the information they need to carry out their investigations. This should apply to all Goldman Sachs business transactions completed in March 2023.

It was indeed during this period that the SVB collapsed. A bankruptcy which, with that of Silvergate Bank and Signature Bank, had caused the worst crisis in the banking and financial markets since that of the Subprimes in 2008.