US Department of Justice opens investigation into Silicon Valley Bank bankruptcy


The US Department of Justice has opened an investigation into the bankruptcy of Silicon Valley Bank (SVB), specifically targeting recent stock sales by a number of the bank’s leaders, US media reported Tuesday.

The Wall Street Journal reported that the US Securities and Exchange Commission, which oversees financial markets (SEC), launched this investigation.

The investigations are still at a preliminary stage and may not lead to formal charges.

The factor that accelerated the bankruptcy of Silicon Valley Bank, which is close to startups, is the withdrawal of very large amounts by customers who have more than $ 250,000 in their accounts, which is the maximum amount guaranteed by the Federal Deposit Insurance Corporation FDIC.

On Friday, the bank was placed under the supervision of this institution, which constituted the largest bankruptcy in the United States since the financial crisis of 2008.

To confirm the strength of the banking system, the authorities indicated on Sunday that all deposits of the bankrupt bank would be guaranteed.

Neither the Department of Justice nor the US Securities and Exchange Commission wanted to comment on the opening of the investigation when Agence France-Presse tried to contact them.

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