- The Justice Department and the Securities & Exchange Commission have launched a preliminary stage but separate investigation probes looking into the collapse of Silicon Valley Bank (NASDAQ:SIVB)
- The separate probes might not lead to charges or allegations of wrongdoing, writes Wall Street Journal
- Shares in SVB Financial Group, which formerly owned the bank, fell 60% last week and stopped trading.
- Also Read: Silicon Valley Bank Failure Prompts Likes For Other Big US Banks Including JP Morgan, Citi.
- The investigations are also examining stock sales that SVB Financial’s officers made days before the bank failed.
- The Justice Department probe involves the department’s fraud prosecutors in Washington and San Francisco, the report added.
- Separately, Apollo Global Management Inc (NYSE: APO), Blackstone Inc (NYSE: BX), and KKR & Co (NYSE: KKR) are weighing purchasing loans held by Silicon Valley Bank.
- The bank had $73.6 billion of loans as of the end of last year. According to a Bloomberg report, the size of the loan book that Apollo and Blackstone are interested in wasn’t immediately known.
- Silicon Valley Bank’s loan portfolio is viewed as an attractive asset and was not a part of what caused the bank to shut down, the report said.
- Photo by gguy on Shutterstock
Justice Department, SEC Launch Probes Assessing What Went Wrong For Silicon Valley Bank
The Justice Department and the Securities & Exchange Commission have launched a preliminary stage but separate investigation probes looking into the collapse of Silicon Valley Bank (NASDAQ: SIVB)
