According to recent reports, both the United States Justice Department and the Securities and Exchange Commission (SEC) have begun looking into the sudden failure of Silicon Valley Bank (SVB), which was ordered closed by authorities last week in the midst of a record-breaking bank run.
According to “people familiar with the matter,” which were cited in a report that was published on March 14 by The Wall Street Journal, the investigations will look into both the events that led to the collapse of the bank as well as the stock sales that SVB financial officers undertook in the weeks leading up to the closure of the bank.
Securities filings reveal that the CEO of the bank, Greg Becker, and the CFO of the firm, Daniel Beck, sold shares two weeks before the bank failed, which has caused some onlookers to feel outraged.
According to Newsweek, on February 27, Becker sold a total of $3.6 million worth of shares, while Beck sold a total of $575,180 worth of equities on the same day. According to CNBC’s reporting, over the course of the past two years, executives and directors of SVB cashed out a total of 84 million dollars’ worth of the company’s stock.
The investigations are, however, still in their early phases, and according to the persons, they may not result in any charges or allegations of misconduct at all. According to another source who has firsthand knowledge of the issue and who was mentioned by NPR, a formal announcement from the Justice Department is anticipated to take place within the next few days.
Cointelegraph attempted to get in touch with both the Securities and Exchange Commission and the Department of Justice, but neither organization responded immediately.