SVB said that Goldman Sachs (NYSE:GS) (Goldman Sachs (NYSE:GS)) purchased the bond portfolio on which it booked a US$1.8bn loss, a transaction that put the wheels in motion for the failure of SVB.
The technology-focused lender attempted a US$2.25bn stock sale last week, using Sachs as its adviser.
Ultimately, the capital raise was thwarted as depositors fled and investors fretted that SVB would need more capital, leading to the biggest bank failing since the 2008 financial crisis.
Reuters said the portfolio sold to Sachs on 8 March mostly consisted of US Treasuries and had a book value of US$23.07bn.
SVB added that the transaction was carried out “at negotiated prices” and netted the bank US$21.45bn in proceeds.
Sachs’ purchase was handled by a division that was separate from the one that handled SVB’s stock sale, Reuters said, citing a source familiar with the matter.