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| The Justice Department and SEC are investigating the collapse of Silicon Valley Bank |
The collapse of Silicon Valley Bank is currently under investigation by both the Justice Department and the Securities and Exchange Commission. It is unclear if any wrongdoing has occurred. Such investigations are common after a public collapse of a bank or company.
Silicon Valley Bank, which primarily served technology workers and startups, failed on Friday after customers withdrew $42 billion in deposits by the end of Thursday. The bank was taken over by the Federal Deposit Insurance Corporation.
The Federal Reserve, Treasury Department, and FDIC have stated that additional funding will be available to ensure that all deposits, insured and uninsured, will be paid. Meanwhile, SVB CEO Greg Becker has not responded to ABC News' request for comment.
In a statement on Sunday, SEC Chair Gary Gensler emphasized the agency's focus on monitoring market stability and prosecuting any misconduct that may threaten investors or the markets.
Separately, shareholders have sued Signature Bank and three former executives, alleging that the New York bank misrepresented its financial health in the days leading up to its seizure by state regulators. Signature Bank, the 29th-largest bank in the US, closed its doors on Sunday. The lawsuit, filed by the Rosen Law Firm in Brooklyn federal court, seeks unspecified damages.
