- Goldman Sachs bought a $21.5 billion bond portfolio from SVB Financial Group to boost its coffers.
- The bond portfolio was worth $1.8 billion less than the book value SVB had assigned to it.
- Goldman helped organize a $2.25 billion stock sale for SVB to fill the funding gap caused by the bond portfolio sale, but the stock sale collapsed.
- Goldman profited from the botched deal as the bond portfolio it acquired from SVB is now worth more.
- SVB became the largest US bank to fail since the 2008 financial crisis, fueling concern about other lenders and prompting regulatory interventions to backstop customer deposits.
Analysis: For Goldman Sachs, SVB's botched stock sale had a silver lining
As SVB Financial Group wrestled with a capital shortfall and the prospect of a downgrade to its credit rating last week, it went to Goldman Sachs Group Inc and worked out an unusual two-part plan, according to people familiar with the discussions.
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