“Your bank’s dual roles meant that not only were you buying SVB’s debt portfolio at a discount, you were also raking in fees as the underwriter for the failed $2.25 billion capital raise that doomed SVB,” Warren wrote in a letter addressed to Goldman Sachs CEO David Solomon.
Facing a liquidity crunch, SVB sold Goldman Sachs a $24 billion portfolio of securities at a $1.8 billion loss in an effort to shore up capital. The bank then tapped Goldman to assist it with a $2.25 billion capital raise from General Atlantic and other investors to make up the shortfall.
