On May 4, according to a regulatory filing with the Securities and Exchange Commission, Goldman Sachs is cooperating with the authorities' investigation into the bankruptcy of the Silicon Valley bank。The investigation focused on two main areas, one being that Silicon Valley Bank had sought funding support from Goldman Sachs before the crisis, and the other being that Silicon Valley Bank had sold its huge assets at a loss at Goldman Sachs's suggestion.。

Race against time! Silicon Valley is in a hurry to seek help from Goldman Sachs to raise money at a loss, triggering a run on the bank and losing more than $40 billion in deposits overnight.

In March, Silicon Valley banks were reportedly worried that their credit ratings could be downgraded, putting them on the brink of junk debt, as the value of their bonds had been significantly eroded by rising interest rates.。Under the circumstances, if the bank needed to sell its bond assets early to raise funds, it would have suffered huge losses.。

So Silicon Valley Bank urgently sought help from Goldman Sachs。In response, Goldman Sachs global head of capital markets Ludwig (David Ludwig) led the proposal to Silicon Valley bank executives, need to raise more capital to appease rating agencies and investors (reassure Moody's and investors).。However, the funding window left for Silicon Valley banks is quite short, as Moody's is ready to downgrade Silicon Valley banks。At the same time, Goldman Sachs only had time to provide non-public investment information to General Atlantic and another investor, and not even enough time for the investor to conduct due diligence on the Silicon Valley bank.。

Finally, on March 8, Silicon Valley Bank unveiled its funding plan。However, investors were surprised to find that, in addition to this plan, the bank was still forced to sell a $21 billion bond portfolio due to funding needs despite incurring a $1.8 billion loss, raising suspicions that the bank's cash flow situation had deteriorated extremely。

The news spread like wildfire, depositors began to run on withdrawals, and on March 9 alone, depositors tried to withdraw $42 billion in deposits from Silicon Valley Bank, about a quarter of the bank's year-end deposits.。At this point, Silicon Valley Bank's fundraising plans have also sadly exited, with no further details.。On the morning of March 10, the California Department of Financial Protection and Innovation (DFPI) announced the takeover of Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, Silicon Valley Bank declared bankruptcy, becoming the second largest bank failure in U.S. history at the time.。

The aftermath of the banking crisis Goldman Sachs, the First Republic by the authorities "after the fall" KPMG is also implicated.

Afterwards, people are curious, in the end, who picked up this $21 billion bargain, can "take advantage of the fire" Silicon Valley banks nearly $2 billion？Surprisingly, this "big smart" is none other than Goldman Sachs.。

According to the disclosure report, Silicon Valley Bank sold a $24 billion portfolio to Goldman Sachs in March at a loss and sought Goldman's assistance in raising 22.$500 million to close liquidity gap at Silicon Valley banks。And the fact is that Goldman Sachs, after buying most of Silicon Valley Bank's portfolio at a loss, immediately began planning how to resell those assets for arbitrage, instead ramped up its earlier commitment to raise capital, and remained silent after the run, which ended up going away.。

This operation of Goldman Sachs is really jaw-dropping.。It is reported that a few days after the collapse of the Silicon Valley bank, Democratic members of the U.S. House of Representatives sent a letter to the heads of the Securities and Exchange Commission, the Federal Deposit Insurance Corporation and the Department of Justice, demanding that Goldman Sachs be investigated for its role in the collapse of the Silicon Valley bank.。

Goldman Sachs said it was "working with and providing information to various government agencies" and that the investigation included the sale of assets by Silicon Valley Bank in March 2023 when the Bank provided funding support to Silicon Valley Bank.。

In fact, in addition to Goldman Sachs, U.S. authorities have recently investigated other subjects of the banking crisis。On May 5, it was reported that the U.S. Securities and Exchange Commission was questioning the first Republican Bank's executive team about whether the team had used inside information to conduct improper transactions.。First Republic Bank is the third bank to fall in the U.S. banking crisis, and the bank was acquired by JPMorgan Chase on May 1 for the vast majority of its assets.。

In addition, the banking crisis has implicated external auditors.。On May 3, according to media reports, the three "victims" of the banking crisis had been independently audited by KPMG at the end of February, and the firm's assessment at the time was "healthy."。The quality and independence of KPMG's audit work have also been widely questioned after the three banks have "exploded."。

Regulators are likely to keep a close eye on Silicon Valley Bank's appointment of its chief risk officer, Keisha Hutchinson, in 2021.。Under SEC rules, she was required to pass a "cooling-off period" of at least 12 months after resigning as lead partner in KPMG's audit division, but she did not join Silicon Valley Bank within two months, raising speculation about KPMG's senior personnel relationship with the audited bank.。

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