By Goldman Sachs bought more than $21bn worth of securities sold by Silicon Valley Bank last week, a transaction which triggered an ill-fated share sale also managed by the Wall Street investment bank.
In a regulatory filing on Tuesday, SVB said Goldman bought $21.45bn of its securities in a transaction that was announced last Wednesday. SVB suffered a $1.8bn after-tax loss on the sale of the securities, which had a book value of just under $24bn and largely consisted of US Treasuries and mortgage-backed securities.
SVB said it had sold the portfolio to Goldman “at negotiated prices”, without elaborating.
Goldman separately managed SVB’s attempted $2.25bn capital raise for SVB, attempting in part to boost its liquidity following the losses.
By Friday, US regulators took control of SVB after customers withdrew a quarter of the bank’s total deposits, following the failed effort to raise the funding.
