DOJ and SEC launch investigations into Silicon Valley Bank after collapse


WASHINGTON- The Justice Department opened an investigation into the collapse of Silicon Valley Bank last week, three sources familiar with the matter confirmed to NBC News on Tuesday.

The Securities and Exchange Commission has also opened its own investigation, two of the sources said.

The investigations come days after the California Department of Financial Protection and Innovation took over and closed Silicon Valley Bank to protect deposits, naming Federal Deposit Insurance Corp. as its trustee.

Silicon Valley Bank headquarters in Santa Clara, California on March 9, 2023.David Paul Morris/Bloomberg via Getty Images

The shutdown was the biggest bank failure since the 2008 financial crisis and the second biggest on record after Washington Mutual collapsed during that industry-wide collapse, according to the FDIC.

He Wall Street Journal first reported the DOJ and SEC investigations, citing people familiar with the matter. That report said the investigations are in the early stages and may not lead to charges or allegations of wrongdoing.

The Justice Department declined to comment. The SEC and Silicon Valley Bank did not immediately respond to NBC News’ requests for comment.

On Sunday, the Treasury Department, the Federal Reserve and the FDIC said the government would support Silicon Valley Bank’s deposits beyond the federally insured limit of $250,000.

Meanwhile, President Joe Biden tried to reassure the public about the situation on Monday after Signature Bank also failed.

«Thanks to my administration’s swift action in recent days, Americans can be confident that the banking system is safe,» Biden said in brief remarks from the White House. «Your deposits will be there when you need them.»

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