US authorities are reportedly investigating the recent collapse of Silicon Valley Bank and possible wrongdoing by the tech-focused lender’s top executives.
The US Department of Justice (DOJ) as well as the Securities and Exchange Commission (SEC) are probing the collapse of Silicon Valley Bank (SVB), according to a «Wall Street Journal» report citing unnamed sources.
The probe is in its early stages and may not result in allegations of wrongdoing or charges being filed.
Stock Sales
As part of the probe, officials are also examining stock sales by officers of former parent SVB Financial Group.
According to securities filings, SVB CEO Greg Becker exercised options on 12,451 shares and sold them on 27 February, netting about $2.3 million. CFO Daniel Beck also sold $575,000 of shares on the same day.
Signature Bank
DOJ and SEC are also investigating Signature Bank after being seized this past weekend. The probe includes an examination of whether or not the New York-based lender took sufficient steps to detect potential money laundering by clients.
«In times of increased volatility and uncertainty, we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly,» said SEC chair Gary Gensler in a separate statement.
«Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws.»
