US prosecutors probe SVB’s collapse

US prosecutors are investigating the collapse of Silicon Valley Bank after a dramatic outflow of customer deposits from the Californian tech lender led to the biggest American bank failure since the global financial crisis, according to a person familiar with the matter.

The Department of Justice’s probe into the implosion of SVB is at an initial stage and may not result in charges.

The Securities and Exchange Commission has also launched an investigation into the lender’s collapse, according to media reports. The investigations, which were first reported by The Wall Street Journal, include looking into stock sales made by SVB staff in the days leading up to the lender’s fall, the reports said.

Gary Gensler, SEC chair, said in a statement on Sunday: “Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws.”

The DoJ declined to comment. SVB and the SEC did not immediately respond to a request for comment.