Bank of the First Republic collapsed this week and was underpinned Federal Deposit Insurance Company receivership. The bank’s assets and deposits were then sold JPMorgan Chase & Co. JPM.
The SEC is investigating whether members of First Republic’s executive team engaged in insider trading prior to the government seizure, Bloomberg reported citing people familiar with the matter. The identities of the executives who are on the SEC radar are not clear, she added.
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The report also says no one previously or currently employed by the bank has been charged with wrongdoing and the investigation could end without anyone being implicated.
When Silicon Valley Bank went under, Bloomberg reported an SEC investigation into executives’ trading activities in the stock.
The The regional banking area is in a crisis of confidence, as skeptical depositors fled these smaller banks and were deprived of much-needed liquidity to support operations.
The Invesco KBW Bank ETF KBWB The index ended Friday’s session at $38.69, up 4.57% Benzinga Pro data.