Shocker: One of america’s most politically connected banks is due for a huge profit off other bank’s failure

Goldman Sachs, one of the largest U.S. investment banks with strong political ties, is likely to gain a massive profit following their purchase of Silicon Valley Bank’s (SVB) debt, according to The New York Times.

SVB, which collapsed last week and was taken over by regulators after depositors initiated a run on the bank, sold $21.4 billion in debt to Goldman Sachs at a loss, according to Reuters, in a bid to clear negative assets off its books. In exchange for the purchase, Goldman Sachs stands to notch a return of over $100 million in fees, according to the NYT.

Goldman had also attempted to help SVB raise capital after its depositors began withdrawing funds as it faced a liquidity crunch, but the effort was ultimately unsuccessful, according to the NYT. This effort was undertaken after bond rater Moody’s privately informed SVB that it could be downgraded due to its long-term bonds losing the bank money.

This is not the first time Goldman has profited during a financial crisis, as it received $13 billion during the bailout of finance and insurance giant AIG when former Goldman CEO, Hank Paulson, was Treasury Secretary in 2008. Paulson spoke with then-Goldman CEO Lloyd Blankfein over 20 times during the week of the AIG bailout, according to the NYT, which was much more than he spoke with other banking executives.

Additionally, Paulson spoke with Blankfein five times on the day in which he obtained an ethics waiver to speak with Goldman Sachs personnel, including twice before the waiver was acquired, according to the NYT.

Moreover, on the day of the AIG bailout, Sept. 16, 2008, Paulson took a call from Blankfein; Paulson did not receive the ethics waiver covering his involvement with Goldman until the next afternoon.

Goldman Sachs’ alumni also include former Trump Treasury Secretary Stephen Mnuchin, president of the Federal Reserve Bank of Minneapolis Neel Kashkari, Clinton Treasury Secretary Robert Rubin and many more, according to the NYT.

Goldman Sachs did not immediately respond to the Daily Caller News Foundation’s request for comment.

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