The US Department of Justice and the Securities and Exchange Commission (SEC) are investigating the bankruptcy of Silicon Valley Bank, a subsidiary of the defunct SVB Financial Group, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The investigations are also looking at sales of shares that SVB Financial executives made days before the bank’s failure, the report said, adding that the Justice Department investigation involves the department’s fraud prosecutors in Washington and San Francisco.
The SEC and a Justice Department spokesman in Washington declined to comment. SVB did not immediately respond to a Reuters request for comment.
The Journal’s report comes a day after SVB Financial Group and two top executives were sued by shareholders, who accused them of concealing how rising interest rates would leave their Silicon Valley Bank unit susceptible to bank failure.
The proposed class action lawsuit against SVB, CEO Greg Becker and CFO Daniel Beck has been filed in federal court in San Jose, California.
Source: Reuters
Source: Gestion
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