US: Democratic lawmakers are calling for an investigation into Goldman Sachs’ role in the collapse of Silicon Valley Bank

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A group of Democratic lawmakers, in a letter addressed to regulators and the Justice Department, calls for an investigation into the role of Goldman Sachs Group Inc in its collapse Silicon Valley Bank, as Rep. Adam Schiff’s office reported.

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The letter is addressed to Attorney General Merrick Garland, Securities and Exchange Commission (SEC) Chairman Gary Gensler and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Greenberg. It is signed by Schiff and 19 other members of Congress from California.

We wish to express our concerns about Goldman Sachs Group’s role in advising SVB and purchasing its bond portfolio” they state in this letter.

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Last Friday California regulators shut it down SVB and outsourced administration to the FDIC. Today, parent company SVB Financial Group announced that applied for membership in Chapter 11 of the bankruptcy code.

A source close to the case told Reuters this week, according to the Athens News Agency, that prosecutors are investigating the collapse of SVBthe largest in the US after Washington Mutual went bankrupt in 2008.

Goldman Sachs did not respond to a request for comment on the lawmakers’ letter. SVB disclosed Goldman Sachs’ role as a buyer of its bond portfolio on March 14, the last day of the SEC’s four business days for such information to be made public, the lawmakers added.

As Goldman Sachs is able to benefit from the collapse of SVBwe strongly urge you to analyze whether Goldman Sachs acted in compliance “safety distance” as a consultant to SVB”, they note in their letter.

Source: News Beast

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