Goldman Sachs Under Purview For Alleged Role in Failed SVB Deal
The U.S. banking system has been under constant stress in 2023. The downfall of several prominent banks caused commotion across the world. The collapse of the Silicon Valley Bank [SVB], in particular, started trouble for other financial institutions as well. Now, months following the SVB crash, Goldman Sachs Group is being investigated by the U.S. government. In March 2023, SVB sold a portfolio worth $24 billion to Goldman Sachs at a loss. Following this, the bank sought Goldman’s assistance in raising over $2.2 billion to make up for the shortfall. However, Goldman Sachs was unable to complete the deal which ultimately led to the failure of the bank. This caused several rival banks and other financial entities to call out Goldman Sachs for failing to secure capital beforehand and instead causing panic in the market. The failed transaction went on to cause significant disruption in the U.S. regional banking system. As a result, U.S. government agencies are currently reviewing Go...