The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Goldman bought securities in sale that preceded SVB failure

Goldman Sachs in New York bought the portfolio of underwater securities that accelerated the demise of Silicon Valley Bank in Santa Clara, Calif.

SVB Financial disclosed in a regulatory filing that it sold Goldman the securities – which had a $24 billion book value – for net proceeds of $21.5 billion.

SVB’s disclosure of the roughly $1.8 billion after-tax loss led to a run on deposits that led regulators to shut down the company’s bank on Friday.

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