Justice Dept, SEC probing collapse of Silicon Valley Bank
SVB Crisis: The Justice Department and the Securities and Exchange Commission (SEC) have launched investigations into the collapse of Silicon Valley Bank, two people familiar with the matter told The Associated Press on Wednesday.
SVB Crisis: The Justice Department and the Securities and Exchange Commission (SEC) have launched investigations into the collapse of Silicon Valley Bank, two people familiar with the matter told The Associated Press on Wednesday.
The investigations which are separate inquiries are in the early stages and will also examine the actions of the bank's senior executives, the people said.
The Justice Department's investigation involves federal prosecutors in California, along with prosecutors involved in fraud cases, the people said.
They were not authorised to publicly discuss the specific details of the ongoing investigations and spoke to the AP on condition of anonymity.
The collapse of Silicon Valley Bank on Friday 'the largest bank failure since the financial crisis of 2008' and Signature Bank two days later have rattled markets as investors seek the safety of bonds amid renewed concerns about problems in the banking sector.
On Wednesday, Credit Suisse, which has been beset by problems long before Silicon Valley Bank's demise, saw its shares hit their lowest level ever as the bank's largest shareholder declined to offer further support.
Click Here For Latest Updates On Stock Market | Zee Business Live
The Federal Reserve is facing criticism for missing what observers say were clear signs that Silicon Valley Bank was at a high risk of default.
And a class action lawsuit was filed against the parent company of Silicon Valley Bank, its CEO and its chief financial officer, saying that the bank didn't disclose the risks that future interest rate increases would have on its business.
As part of its investigation, the SEC has begun the process of seeking documents by sending out hold notices, said one of the people familiar with the matter. A hold notice requires the recipient to preserve relevant documents and electronically stored information.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
If you make RDs of Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 in post office, what will be your maturity amount?
Special Live Trading Session on Saturday: Know why BSE, NSE will remain open on May 18; check timings
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
09:08 AM IST