Goldman Sachs is currently under investigation by US authorities over its role in the events surrounding the collapse of Silicon Valley Bank. The bank has disclosed in a securities filing that it is cooperating with the investigation and providing information to the relevant governmental bodies.
Silicon Valley Bank was a tech-focused bank that provided financial services to startups and technology companies. Its collapse in March 2023 came as a surprise to many in the industry, and there has been speculation about the causes of the bank’s failure. Now, with the news of the investigation, attention has turned to Goldman Sachs’ role in the affair.
It is unclear at this point what exactly the authorities are looking into, but it is likely that they are investigating whether Goldman Sachs played any part in the bank’s collapse. In particular, they may be looking at whether Goldman Sachs provided any inappropriate advice or financial products to Silicon Valley Bank in the lead-up to its failure.
This is not the first time that Goldman Sachs has been embroiled in controversy over its financial practices. In 2021, the bank agreed to pay a $2.9 billion fine to settle a criminal probe into its role in the 1MDB scandal, which involved the theft of billions of dollars from a Malaysian government investment fund.
The investigation into Goldman Sachs’ involvement with Silicon Valley Bank is ongoing, and it is unclear how long it will take to reach a conclusion. However, the outcome of the investigation could have significant implications for both Goldman Sachs and the wider financial industry. It remains to be seen what will come to light as the investigation progresses, but it is clear that this is a story that will continue to unfold in the coming months.