A group of 20 House Democrats from California, including Rep. Adam Schiff, called on federal law enforcement Friday to investigate the relationship between Goldman Sachs and Silicon Valley Bank.
In a letter sent to the heads of the Justice Department, Securities and Exchange Commission and Federal Deposit Insurance Corporation, the lawmakers raised “concerns over the role of Goldman Sachs Group in advising SVB and the purchase of its bond portfolio.”
The letter cites a New York Times report that Goldman could stand to earn a $100 million from its purchase $21.4 billion in debt from SVB in bank’s final final days, as part of its failed effort to shore up its balance sheet.
In addition to the debt deal, Goldman also led a an effort raise money through sales of Silicon Valley Bank stock, the failure of which analysts say spooked investors and helped spark a run on SBV assets.
“As Goldman Sachs is poised to profit from SVB’s failure, we strongly urge you to analyze whether Goldman Sachs operated at ‘arm’s length’ in their role as advisor for SVB,” the letter reads.
This article was originally published by Marketwatch.com. Read the original article here.
