The US Department of Justice and the Securities and Exchange Commission (SEC) are investigating the collapse of Silicon Valley Bank (SVB). The investigation is at an early stage.
Regulators are studying the sale of shares, controlling the actions of top managers. This was reported by sources from The Wall Street Journal and The Washington Post.
- SVB posted a loss of $1.8 billion on March 9. The release of the report coincided with news of the closure of California-based cryptocurrency bank Silvergate, sending investors into a panic. Depositors began withdrawing funds from SVB en masse, leading to a sharp decline in liquidity. SVB shares collapsed 60% in two days, trading in the bank’s securities was halted.
- A couple of days later, Silicon Valley Bank failed. The 16th largest bank in the US ($200 billion) has financed Silicon Valley startups. 89% of deposits totaling $175 billion were uninsured.
Author:
karina pardaeva
Source: RB
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