They bought SVB’s loans at a $2bn loss to SVB [1] and then advised them to go to market with non-binding capital commitments [2][3][4] all while billing SVB $100mm for the trouble [5]. In short, they gave terrible advice, tanked the bank and then made bank, all while West Coast punditry began blaming depositors.
They bought SVB’s loans at a $2bn loss to SVB [1] and then advised them to go to market with non-binding capital commitments [2][3][4] all while billing SVB $100mm for the trouble [5]. In short, they gave terrible advice, tanked the bank and then made bank, all while West Coast punditry began blaming depositors.
[1] https://www.ft.com/content/84728014-c900-48cd-be87-8defbf557...
[2] https://ir.svb.com/news-and-research/news/news-details/2023/...
[3] https://www.ft.com/content/7e7fdddb-724c-42fd-98ee-5d7248d53...
[4] https://www.wsj.com/articles/how-goldmans-plan-to-shore-up-s...
[5] https://www.nytimes.com/2023/03/15/business/dealbook/goldman...