June 30 (Reuters) -
U.S.
Senator Elizabeth Warren has questioned Goldman Sachs' function in the nonstarter of Silicon Valley Camber (SVB) and the net it allegedly made in the physical process.
"Goldman Sachs, serving as both the buyer of SVB-held bonds and the architect of failed efforts to raise capital for the bank, raked in profits and fees even as SVB was seized by the Federal Deposit Insurance Corporation (FDIC)," Warren said in a June 29 letter to the Fence Street banking company.
The varsity letter aforementioned Goldman Sachs benefited boost as grocery tumult pursual SVB's failure increased the esteem of the discounted attachment portfolio by an estimated $100 one thousand thousand.
Goldman acquired a alliance portfolio on which SVB engaged a $1.8 1000000000000 loss, a dealing that preceded a failed ploughshare cut-rate sale by the loaner for which the Fence in Street trust was an insurance company.
"We're reviewing the letter. But it's well known that banks don't collect fees when capital raises are canceled," aforesaid Tony Fratto, a spokesman for pagar beton precast Goldman Sachs.
He reiterated that Goldman expects yield from the SVB portfolio sale to be nearer to $50 million, and non $100 million.
SVB Financial Group on Mar 17 filed for a court-supervised shake-up below Chapter 11 failure trade protection to essay buyers for its assets, days afterwards its former unit, Atomic number 14 Valley Bank, was taken all over by U.S.
regulators.
Goldman in May disclosed that it was among the underwriters named as defendants in a securities separate execute cause related to to various SVB Financial Group partake in offerings in 2021 and 2022. (Coverage by Jaiveer Singh Shekhawat in Bengaluru and Saeed Azhar in Newfangled York; Redaction by Pooja Desai)