WASHINGTON – Days after being taken over by federal authorities to stop a bank run that threatened to spread throughout the U.S. banking industry, the Justice Department has launched an inquiry into the circumstances surrounding Silicon Valley Bank’s (SVB) failure.
A separate probe has also been launched by the Securities and Exchange Commission.
As part of its ongoing probe, the DOJ will look into whether bank executives traded any stock before the collapse.
The failure of SVB was the second-largest bank failure in American history and the biggest since the 2008 global financial crisis. With $210 billion in assets, the bank was the 16th largest in the United States.
President Biden promised to investigate the reason of the collapse and sought to reassure Citizens about the stability of the banking sector.
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