Federal Regulators Investigate SVB Collapse; Shareholders File Suit Against Bank and Executives – Bitcoin News

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The Parent entity of Silicon Valley Bank, SVB Financial Group, and two senior managers have been sued by shareholders in the aftermath of SVB’s collapse last Friday. The bank is being accused in a proposed class action of failing to disclose the potential risk of interest rate hikes. In addition, anonymous sources have revealed that the U.S. Department Of Justice (DOJ) and Securities Exchange Commission (SEC) are both conducting investigations into the failure of Silicon Valley Bank.

Report: Investigations Into Silicon Valley Bank’s Collapse Include Stock Sales By Senior Executives

SVB Financial Group, the parent company of Silicon Valley Bank, and the firm’s CEO Greg Becker and CFO Daniel Beck have been named as defendants in a lawsuit filed on March 13th. According to Reuters, the bank and its senior executives are accused of concealing the potential damage that rising interest rates might cause to the bank’s failing financial institution. This class action lawsuit was filed in a federal court in San Jose, California and is being led by SVB shareholder Chandra Vanipenta.

Silicon Valley Bank was put into receivership by the Federal Deposit Insurance Corporation (FDIC) on Friday. On Sunday, the U.S. Federal Reserve, FDIC, and Treasury announced that all depositors would be reimbursed. The FDIC converted SVB into an FDIC-controlled bridge bank and opened the financial institution back up to depositors on Monday. The Vanipenta suit is asking for unspecified damages from shareholders and argues that the bank and executives should have disclosed that fact to the public. The firm could be affected by rate increases in federal funds.

In addition to the lawsuit against SVB, anonymous sources were revealed to the Wall Street Journal stating that the Department Of Justice (DOJ) and Securities Exchange Commission (SEC) have each opened separate investigations into the bank’s collapse. The investigators are also looking into the stock sales made by senior SVB executives just prior to the collapse. The DOJ’s investigation is said to involve prosecutors in San Francisco and Washington, according to the sources.

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accountability, Banking, banks and bridge bank, california. Chandra Vanipenta, Class-Action, collapse, damages, depositors, Disclosure, Executives, FDIC, federal court, Federal Deposit Insurance Corporation, Federal Funds Rate, Federal Reserve, financial institution, interest rates, Investigation, Lawsuit, Prosecutor’s, San Francisco, San Jose, Securities Exchange Commission, Shareholders, Silicon Valley Bank, stock sales, SVB, SVB Financial Group, Treasury, U.S. Department Of Justice, Wall Street Journal, Washington

What are your thoughts on the outcomes of the investigations into Silicon Valley Bank’s collapse? Let us know in the comments below.

Jamie Redman

Jamie Redman The News Lead at Bitcoin.com News Financial tech journalist living in Florida. Redman Since 2011, has been an active participant in the cryptocurrency community. He Passionate about BitcoinOpen-source code and decentralized apps. Since September 2015, Redman Has written over 6,000 articles. Bitcoin.com News Information about the new disruptive protocols.




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