HE Silicon Valley Bank collapse This led to US authorities intervening in the asset last Friday to avoid bankruptcy and stop contagion effect under Magnifying glasses of the Department of Justice and the Securities and Exchange Commission (SEC)as published by ‘The Wall Street Journal’ and subsequently endorsed by ‘The New York Times’, citing anonymous sources.
Both the prosecutor’s office and the regulatory agency opened two separate investigations. According to the ‘Journal’, when it comes to Justice, they are run by prosecutors in both Washington and San Francisco who specialize in fighting fraud. Either way, investigations are in preparation and, as the paper explains, are part of the usual process in which a financial institution or listed company suffers large losses and are not necessarily leaders in the end. making accusations or showing a wrongful act of the bank.
Sale of executive shares
Always according to the information in the ‘Magazine’ investigations are also Share sale of some of SVB Financial’s top executivesBy Friday, the owner of the bank did, a few days before the business went down. Both CEO Greg Becker and CFO Daniel Beck made these sales on February 27, a week before the crash. In Becker’s case, he received about $2.3 million. Meanwhile, Beck sold a third of his stake in the company for $575,000.
As the ‘Journal’ recalls, SEC investigations often examine whether a company has made enough public about its assets prior to an adverse event. financial risks or economic uncertaintiesincluding filings with regulators or management statements to investors or analysts.
first request
Since Monday, Becker and Beck are facing the first of a series of lawsuits filed by bank shareholders whose losses were not covered by authorities’ measures to insure all SVB deposits. In a class action lawsuit filed in federal court in San Jose, California, hide these downloads interest rates between Federal Reserve they left the bank “especially sensitive” to large deposit withdrawals by some of the customers, similar to what happened last week.
After the regulators’ intervention, SVB Financial no longer controls the bank but owns three other business units, including investment banking and venture capital, which it is trying to sell or restructure.