Page 19 - Gregory Becker News Today

NEW YORK, March 14 (Xinhua) -- The U.S. Securities and Exchange Commission and the Justice Department are investigating how the collapse of Silicon Valley Bank (SVB) became the second largest bank failure in the country's history, The Wall Street Journal (WSJ) reported on Tuesday.

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

The fall of Silicon Valley Bank revives memories of Lehman Brothers' bankruptcy. The two situations have some fundamental differences, but there is enough in common that the risks that SVB could spark a new global financial crisis is very real.

The shortfall is made up of unrealized losses like those which triggered the collapse of Silicon Valley Bank, a study suggests.

The probes are looking into the stock sales that SVB executives’ conducted ahead of the tech-focused bank’s collapse.

Silicon Valley Bank reportedly fired over 100 employees two months before regulators came in and shut the company down, an internal email revealed.

Legal experts said a focus of the investigation could be insider sales by several bank executives in the weeks before the bank’s failure.

Andy Kessler, who had a long career in finance before joining the Journal as a columnist, wrote on Monday that a number of reasons could have led to the banks collapse.

The US Securities and Exchange Commission and the Justice Department are investigating how the collapse of Silicon Valley Bank (SVB) became the second largest bank failure in the country's history, The Wall Street Journal reported on Tuesday.

While depositors will be made whole under an extraordinary move by regulators, a fire sale of the entire bank and advisors fleeing to competitors create new challenges.