Silicon Valley Bank collapse under investigation by US Justice Department, SEC
- Authorities are looking for possible misconduct, including whether stock sales by executives violated trading rules
- The news comes a day after SVB Financial Group and 2 top executives were sued by shareholders
US authorities are examining the collapse of Silicon Valley Bank (SVB) for misconduct by officers, including whether stock sales by executives violated trading rules, according to a person familiar with the matter.
The investigations, which are in early stages, are being handled by prosecutors in the Justice Department’s fraud section, the US Attorney’s Office for the Northern District of California and the Securities and Exchange Commission (SEC), said the person, who asked not to be identified because the investigation has not been publicly disclosed.
No one at the bank has been accused of wrongdoing and the investigation could end without charges being brought.
Representatives for SVB and the entity that is running the bank since its failure declined to comment.
It could not be immediately be determined which executives are the focus of the inquiries.