The US Department of Justice has opened an investigation into the bankruptcy of SVB bank, which could target recent share sales by several bank executives, several US media reported on Tuesday, citing sources familiar with the matter. .
According to the Wall Street Journal, the agency that oversees stock markets, the SEC, has also launched an investigation.
The investigations are still at a preliminary stage and may not lead to formal charges, the newspaper adds.
The rout at SVB, a bank close to startups and venture capital firms, was precipitated by massive withdrawals from clients with more than $250,000 in their accounts, more than the usual amount guaranteed by authorities.
The store came under the control of the US regulator FDIC on Friday, marking the biggest bank failure since the 2007/08 financial crisis.
coercive measures
To reassure about the soundness of the banking system, the authorities assured on Sunday that all the deposits of the bankrupt Silicon Valley Bank (SVB) would be guaranteed.
Neither the Department of Justice nor the SEC wanted to comment to AFP on the opening of an investigation.
The SEC, however, referred to a statement by its chairman, Gary Gensler, who on Sunday said the SEC “will investigate and take enforcement action if it finds violations of federal securities laws.”
“In these times of increased volatility and uncertainty, the SEC is particularly focused on monitoring market stability and identifying and prosecuting any form of misconduct that could threaten investors, capital formation, or the markets in general,” it said in that moment.
In an opinion piece published Monday, influential Senator Elizabeth Warren called on prosecutors and regulators to “investigate whether executives have engaged in insider trading or violated other civil or criminal laws.”
He also urged the authorities to recover the salaries and bonuses paid last year to SVB boss Greg Becker, as well as bonuses paid to executives.
According to stock exchange documents, Greg Beck and SVB CFO Daniel Beck completed share sales at the end of February according to a pre-arranged sales schedule.
Source: BFM TV
