Justice Department, SEC Launch Probes Assessing What Went Wrong For Silicon Valley Bank

  • The Justice Department and the Securities & Exchange Commission have launched a preliminary stage but separate investigation probes looking into the collapse of Silicon Valley Bank SIVB
  • The separate probes might not lead to charges or allegations of wrongdoing, writes Wall Street Journal
  • Shares in SVB Financial Group, which formerly owned the bank, fell 60% last week and stopped trading. 
  • Also Read: Silicon Valley Bank Failure Prompts Likes For Other Big US Banks Including JP Morgan, Citi.
  • The investigations are also examining stock sales that SVB Financial's officers made days before the bank failed
  • The Justice Department probe involves the department's fraud prosecutors in Washington and San Francisco, the report added.
  • Separately, Apollo Global Management Inc APOBlackstone Inc BX, and KKR & Co KKR are weighing purchasing loans held by Silicon Valley Bank.
  • The bank had $73.6 billion of loans as of the end of last year. According to a Bloomberg report, the size of the loan book that Apollo and Blackstone are interested in wasn't immediately known.
  • Silicon Valley Bank's loan portfolio is viewed as an attractive asset and was not a part of what caused the bank to shut down, the report said.
  • Photo by gguy on Shutterstock
Market News and Data brought to you by Benzinga APIs
Posted In: NewsLegalSECMarketsMoversGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!