The Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs’s GS role in buying Silicon Valley Bank’s securities portfolio while it was working on its doomed capital raise before the bank’s failure, according to people familiar with the matter.
The Justice Department has also subpoenaed Goldman as part of its investigation into SVB SIVBQ, some of the people said. The Wall Street Journal previously reported that the SEC and Justice Department are investigating the bank’s collapse. The Goldman inquiries are part of the broader probes, some of the people said.
The Fed and the SEC are seeking documents related to Goldman’s role as both buyer of the securities portfolio and adviser on the capital raise for SVB, the people said. They are looking to see if Goldman’s investment banking side and its trading division were improperly communicating about the portfolio sale, some of the people said.
Read the full story on The Wall Street Journal here.