(Reuters) – Goldman Sachs Group Inc. said in a filing on Thursday that it is cooperating with government investigations into collapsed Silicon Valley Bank.
The Wall Street bank is “cooperating with and providing information to various government agencies in connection with their inquiries and investigations” into SVB, including the two companies’ dealings in March.
Goldman was involved in important events before SVB’s fall that month. The Wall Street bank acquired a bond portfolio in which SVB posted a $1.8 billion loss, a transaction that preceded a failed SVB stock sale in which Goldman was the underwriter.
Goldman was also among the underwriters named as defendants in a securities class action related to several SVB stock offerings in 2021
and 2022, a regulatory filing said.The plaintiffs allege that the offering documents contained material misstatements and omissions, Goldman said in the filing. The plaintiffs seek unspecified damages in the lawsuit, which was filed April 7 in the US District Court for the Northern District of California.
On March 17, SVB Financial Group filed for court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by US regulators.
Financial stocks have lost billions of dollars in value after the collapses of SVB and Signature Bank, which sent jittery depositors fleeing to larger “too-big-to-fail” institutions.
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