Washington, DC — On June 15, Representative Adam Schiff (D-Calif.) released the following statement in response to reports that the Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs as part of its broader probe into the collapse of Silicon Valley Bank:
“Earlier this year, I asked regulators to examine Goldman Sachs’ involvement in the sale of Silicon Valley Bank. The bank’s collapse threatened the livelihood of countless American workers and small businesses and threw into question the strength of regional banks across the nation. Yet, we learned that senior SVB executives profited before the bank’s demise from stock sales, bonuses, and other compensation. Investigating Goldman Sachs’ role in the disposition of SVB assets and whether it operated at arm’s length is key to protecting taxpayers and depositors, and I am pleased to hear that the SEC and Federal Reserve are doing so,” said Schiff.
In March, Schiff led 20 members of the California Congressional delegation in sending a letter to Attorney General Merrick Garland, SEC Chairman Gary Gensler, and FDIC Chair Martin Gruenberg, asking for an investigation into the role Goldman Sachs played in the Silicon Valley Bank failure – the second largest bank failure in American history.
Schiff previously introduced legislation with Senator Blumenthal and Congressman Levin to impose claw backs on profits made from bonuses and stock sales by executives when a bank fails. Just before SVB failed, executives reportedly received bonuses. Greg Becker, who was the CEO of SVB, reportedly sold $3.6 million in SVB stock just days before the bank’s collapse, potentially profiting off the impending demise of the very bank he managed.
Original source can be found here.
