The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are reportedly investigating the collapse of Silicon Valley Bank (SVB) after it suffered a fatal run on deposits last week.
The DOJ and SEC are leading separate probes into the bank’s failure, which prompted regulators to take it over on Friday, according to The Wall Street Journal. These types of inquiries are often initiated after financial institutions experience unexpected and heavy losses, and the investigations do not necessarily mean that criminal charges will be filed.
Such investigations typically look at the role executives played in the weeks and months leading up to the collapse. Investigators may consider whether SVB properly characterized its financial health and risks to investors before its collapse.
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The Federal Deposit Insurance Corporation
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