Silicon Valley Bank under the scrutiny of financial market regulators. It's about the sale of securities just before its collapse
More problems due to the bankruptcy of the American bank.
More facts about the banking crisis in the United States come to light. The country's supervisory authorities are looking more and more closely at certain issues related to failed banks. Signature Bank is being investigated for money laundering, and a parallel investigation was launched against Silicon Valley Bank over the sale of the bank's stock shortly before its collapse.
Did the directors of SVB know that the bank would soon go bankrupt?
The collapse of the Silicon Valley Bank (SVB) is one of the sector's worst disasters in the last 15 years. Supervisory authorities in the United States are investigating the exact reasons that led to the bankruptcy of this financial institution.
According to the Wall Street Journal (WSJ) in a report published on March 14, an investigation was launched into the sale of the bank's shares, which was carried out by bank officials in the weeks before the panic among American and international investors.
The US Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) are investigating the case. Documents containing information about the bank's securities suggest that its CEO - Greg Becker - together with chief financial officer - Daniel Beck - sold shares in their company two weeks before its collapse.
Becker disposed of his $3.6 million stake on February 27. Beck, on the other hand, sold $575,180 worth of stock on the same day, according to Newsweek. Moreover, the management and directors of SVB were to distribute to themselves profits from the sale of shares worth $ 84 million over the past two years, as reported by CNBC.
NPR, citing a person familiar with the matter, said that within a few days we can expect an official statement on this matter from the Department of Justice.
The SEC is looking for a reason to attack banks
Recent weeks have also shown us that when the SEC steps in, we need to be prepared for all sorts of countermeasures from that regulator. A few days after the collapse of the SVB, the chairman of the commission - Gary Gensler - announced that his colleagues would constantly look for people who "significantly violate US securities laws."
"Without talking to any single entity or person, we will investigate and take enforcement action if we find violations of federal securities laws," Gensler said.