The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, according to people familiar with the matter, after the California lender was taken over by regulators last week amid a historic run on its deposits.
The separate probes are in their preliminary phases and may not lead to charges or allegations of wrongdoing. Prosecutors and regulators often open investigations after financial institutions or public companies suffer big, unexpected losses. Shares in SVB Financial Group SIVB 0.00%increase; green up pointing triangle, which formerly owned the bank, fell 60% last week and have been stopped from trading since Friday.
The investigations are also examining stock sales that SVB Financial’s officers made days before the bank failed, the people said. The Justice Department probe involves the department’s fraud prosecutors in Washington and San Francisco, the people said.
SVB Financial Chief Executive Greg Becker didn’t return a phone message seeking comment. The company’s chief financial officer, Daniel Beck, didn’t immediately respond to a request for comment. Spokesmen for the San Francisco U.S. attorney’s office and the Justice Department’s criminal division in Washington declined to comment. An SEC spokeswoman declined to comment.Justice Department, SEC Investigating Silicon Valley Bank’s Collapse — 2023News
Categories: Economic History
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