US prosecutors are investigating the collapse of Silicon Valley Bank, according to a source familiar with the same matter.
The US Justice Department, and the Securities and Exchange Commission. Reportedly starting those inquiries, we’re not being told yet exactly what they are looking for what they are looking.
But there is a large probability that they will be looking at whether any red flags were missed or ignored in the lead-up to Silicon Valley bank’s collapse. Also, several banking executives at SVB sold shares in the bank in the lead-up to its collapse.
That is something that could be probed as a result of this inquiry, despite the fact that we have not seen any effect of other institutions failing. Lawmakers are still warning, including one from the House Financial Services Committee.
“I think we have to keep a very watchful eye, and obviously, the Fed is doing that, and I think the Treasury is doing that to make sure there are no runs on further small, medium, and regional banks”, an official said.
Read Also:Silicon Valley Bank: What Led to the Collapse of the Billion-Dollar Company?
One thing that certainly has become infected is the outlook for the US banking system one of the big three rating agencies. Moody’s has downgraded its outlook for the US banking system.
It is downgraded from stable to negative, cutting that forecast as a result of what we have seen during the last few days, it is also a warning that potentially other financial institutions could fail.
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