The fall of Silicon Valley Bank, the second-largest failure since the Great Financial Crisis in 2008, is being investigated by the Securities and Exchange Commission (SEC) and the U.S. Justice Department.
The Justice Department’s fraud department, the US Attorney’s Office for the Northern District of California, and the Securities and Exchange Commission are handling the early-stage investigations, according to a Bloomberg report.
There may not be any charges or claims of misconduct as a consequence of the different investigations, which are still in the early stages. Also, only days before the Silicon Valley Bank failed, SVB Financial officials sold shares of stock.
Greg Becker, the CEO of SVB Financial, and Daniel Beck, the CFO, allegedly both sold part of their stock the week before the bank failed. On February 27, Becker made a profit of around $2.3 million by selling 12,451 shares.
Beck sold shares for little over $575,000, or almost one-third of his SVB holdings, on the same day.
Everyone was shaken by the Silicon Valley Bank collapse, which caused serious financial problems for several businesses. Silicon Valley Bank was sued by its shareholders for failing to warn that rising interest rates would make it “especially vulnerable” to a bank run.
Compiled by Coinbold