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Democratic Lawmakers Call for Investigation into Goldman Sachs' Role in Silicon Valley Bank Collapse

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BNN Correspondents
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Democratic lawmakers in the US have sent a letter to the Justice Department and regulators, calling for an investigation into Goldman Sachs' role in the collapse of Silicon Valley Bank (SVB). The letter was signed by Representative Adam Schiff and 19 other members of the California congressional delegation, including Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez.

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According to the lawmakers, Goldman Sachs sold structured financial products, including toxic collateralized debt obligations and mortgage-backed securities, to SVB, which led to significant losses for the tech lender. The lawmakers argue that Goldman Sachs may have engaged in illegal and unethical behavior in its dealings with SVB, and they are calling for the bank to be held accountable for its actions.

"Goldman Sachs has a history of putting profits over people and engaging in shady practices that harm consumers and the broader economy. We need to hold them accountable for their role in the collapse of Silicon Valley Bank and ensure that they cannot continue to engage in these types of activities," said Senator Warren in a statement.

A spokesperson for Goldman Sachs has stated that the bank acted appropriately and in accordance with all applicable laws and regulations in its dealings with SVB. However, the lawmakers are not convinced and are urging the Justice Department and regulators to investigate the matter.

The collapse of SVB has raised concerns about the stability of the financial sector and the need for stricter regulations to prevent such collapses from happening in the future. The lawmakers' call for an investigation into Goldman Sachs' role in the SVB collapse highlights the need for accountability and transparency in the financial industry.

It remains to be seen whether the Justice Department and regulators will launch an investigation into Goldman Sachs' role in the SVB collapse. However, the lawmakers' actions signal a growing concern over illegal and unethical practices in the financial industry and the need for stronger regulatory oversight to prevent such practices from causing further harm to the economy and consumers.

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