DOJ, SEC Launch Investigations into Silicon Valley Bank Collapse
The Department of Justice and the Securities and Exchange Commission are both opening investigations into the collapse of Silicon Valley Bank.
Details: SEC chair Gary Gensler issued a statement Sunday stating, “without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws.” Both investigations are in the initial stages, and the focus of the probes is not yet clear. Outlets across the spectrum are speculating the focus could include stock trades made by Silicon Valley Bank executives in the weeks leading up to the collapse.
For Context: Last week, the FDIC took control of Silicon Valley Bank, a popular lender for tech startups, after customers tried to withdraw $42 billion on Thursday. The bank run was sparked by an announcement from the Silicon Valley Bank that it planned to sell additional stock in order to make up a deficit stemming from a decrease in the value of government bonds. The collapse led to fear across the banking sector, leading President Biden to address the issue Monday, where he offered assurances that the banking system was stable. Treasury Secretary Janet Yellen signaled Silicon Valley Bank would not be bailed out by the federal government, stating the focus was on insuring depositors.
How The Media Covered It: Outlets across the spectrum covered the story mildly and consistently, often highlighting speculation on the potential focus on the agencies’ probes.
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From the CenterJustice Department, SEC Investigating Silicon Valley Bank’s Collapse
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 -60.41%, which formerly owned the bank, fell 60%...
From the LeftU.S. Is Said to Open Investigation Into Silicon Valley Bank Collapse
The Justice Department has opened an investigation into the collapse of Silicon Valley Bank, the California lender that was taken over by federal regulators on Friday after its depositors rushed to pull their money out of the bank, two people with knowledge of the matter said.
The investigation is in its early stages, and it is unclear just what federal prosecutors are focused on, the person said. A Justice Department spokesman declined to comment.
One focus could be sales of company shares by several bank executives in the weeks before...
From the RightJustice Department, SEC investigating failure of Silicon Valley Bank
The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank after the lender was taken over by regulators, according to a report.
The Wall Street Journal reported Tuesday that the separate investigations are in their preliminary phases after the run on deposits last week at the nation’s 16th-largest bank.
The investigations are examining stock sales that SVB Financial’s officers made days before the bank failed, the Journal reported, citing people familiar with the probes. The Justice investigation involves the department’s fraud prosecutors in Washington and San...
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