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
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