Why corporate America is concerned about affirmative action

Washington warns US companies about a Chinese counterintelligence law. The National Counterintelligence and Security Center warns that a recently revised law, due to take effect Saturday, could give Beijing greater access to and control over company data, according to The Wall Street Journal. The message comes after China raided offices of Western-affiliated consultancies, citing security concerns.

Warren questions Goldman about his SVB roles

Months after Silicon Valley Bank collapsed, Goldman Sachs’ role in its final days — as an advisor to the lender and as a buyer of its debt, potentially enabling Goldman to make large profits — has come under scrutiny, including from federal authorities. Now Senator Elizabeth Warren, Massachusetts Democrat and financial regulatory specialist, is demanding answers from Goldman, DealBook is the first to report.

“This dual role – in which Goldman benefited while the economy suffered – is reminiscent of the company’s behavior during the 2008 financial crisis, when it profited both from selling mortgage-backed securities and placing bets against them,” he said. Warren wrote in a letter Thursday to David Solomon, the CEO of the Wall Street firm

The letter reflects the growing attention to Goldman’s role. The company tried to help Silicon Valley Bank strengthen its finances ahead of a potential downgrade from Moody’s in two ways: by buying $21.4 billion worth of debt from SVB and by advising it on a planned share sale. of $2.25 billion. (The capital raise fell through when the debt sale forced SVB to take a $1.8 billion write-off, scaring off investors.)

On the debt side, Goldman bought SVB’s loan portfolio at a hefty discount, trying to make a profit by later reselling it. While that’s a fairly typical move, it’s gotten a lot of attention here given the fallout from SVB’s collapse. Goldman had offered its client the option of hiring another advisor for the debt transaction, though SVB declined, DealBook previously reported.

“Goldman Sachs appears to have benefited from almost every stage of the Silicon Valley Bank collapse.Warren wrote. She asked Goldman to disclose any insurance fees it received for advising on the botched capital raise, what the company paid for the SVB loans and what happened to the value of that debt in the weeks following the bank’s collapse.