Introduction:
The Federal Reserve and the Securities and Exchange Commission (SEC) are reportedly investigating the securities portfolio management practices of Goldman Sachs and Silicon Valley Bank. The investigation is focused on the banks’ management of their securities portfolios, specifically in relation to how they are valued and reported.
The Investigation:
According to a report by Bloomberg, the investigation is focused on how the banks value and report their holdings of securities, and whether they are accurately reflecting the true value of those securities. The investigation is said to be in its early stages, and it is unclear if any wrongdoing has been found at this time.
Goldman Sachs’ Response:
Goldman Sachs has stated that it is cooperating with the investigation and that it takes its reporting and valuation obligations seriously. The bank has also stated that it regularly reviews its practices and procedures to ensure that they are in compliance with all applicable laws and regulations.
Silicon Valley Bank’s Response:
Silicon Valley Bank has not yet issued a statement regarding the investigation.
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Conclusion:
The investigation by the Federal Reserve and the SEC into the securities portfolio management practices of Goldman Sachs and Silicon Valley Bank is ongoing. It remains to be seen what, if any, wrongdoing will be uncovered during the investigation.
