(Reuters) – The U.S. Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs Group’s role in buying Silicon Valley Bank’s securities portfolio while it was working on the bank’s capital raise, the Wall Street Journal reported on Thursday.
Goldman had acquired a bond portfolio of Silicon Valley Bank on which the latter booked a $1.8 billion loss.
That preceded a failed share sale by Silicon Valley Bank where Goldman was an underwriter.
The sale eventually failed, spurring the lender’s collapse that brought on the worst banking crisis in 15 years.
U.S. prosecutors were investigating the collapse of the Santa Clara, California-based bank, Reuters reported in March.
Spokespeople for the Justice Department and the SEC did not immediately respond to Reuters’ requests for comment.
Goldman had said last month it was cooperating with government probes into Silicon Valley Bank.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)
