The Department of Justice, the SEC is investigating the bank’s failure IV News

Washington: The Justice Department and the Securities and Exchange Commission (SEC) have opened investigations into the collapse of a Silicon Valley bank, two people familiar with the matter told The Associated Press on Wednesday.

The investigations — which are separate investigations — are in their early stages and will also examine the actions of the bank’s top executives, the people said.

The Justice Department investigation involves federal prosecutors

The Justice Department investigation involves federal prosecutors in California, along with prosecutors involved in fraud cases, the people said.

They were not authorized to publicly discuss specifics of the ongoing investigations and spoke to The Associated Press on condition of anonymity.

SVB’s biggest crisis since the 2008 banking collapse

The collapse of Silicon Valley Bank on Friday – the biggest bank failure since the 2008 financial crisis – and Signature Bank two days later have rattled markets as investors seek the safety of bonds amid renewed concerns about problems in the banking sector.

The US Federal Reserve is criticized for missing clear signs of a SVB crisis

On Wednesday, Credit Suisse, which has had problems long before the Silicon Valley bank’s collapse, saw its shares hit an all-time low as the bank’s largest shareholder refused to offer further support.

The central bank is facing criticism for missing what observers say were clear signs that a Silicon Valley bank was at high risk of default.

And a class-action lawsuit was filed against the parent company of a Silicon Valley bank, its CEO and chief financial officer, alleging that the bank failed to disclose the risks future rate hikes would pose to its business.

The SEC begins an investigation

As part of its investigation, the SEC has begun the process of seeking documents by issuing standstill notices, one of the people familiar with the matter said. Notice of Pending requires the recipient to retain relevant documents and electronically stored information.