The collapse of Silicon Valley Bank (SVB) has triggered two federal investigations, one by the Department of Justice (DOJ) and the other by the Securities and Exchange Commission (SEC), according to a Wall Street Journal report.
The Wall Street Journal reported Tuesday that “people familiar with the matter” had indicated both the DOJ and the SEC were conducting separate investigations in the aftermath of the bank’s collapse, noting it is a common practice for authorities to “open investigations after financial institutions or public companies suffer big, unexpected losses.”
Both investigations are reportedly looking into sales of SVB stock by management just “days before the bank failed,” with DOJ “fraud prosecutors in Washington and San Francisco” having taken an interest in the case, per the Journal.
Last week, the institution suffered a “massive run on…
