SEC Investigates Stock Sales of SVB Executives before Collapse

The US Securities and Exchange Commission (SEC) is reportedly probing into the stock sales of the Silicon Valley Bank (SVB) executives that they carried out just before the collapse of the bank. The Wall Street Journal reported this and pointed out that the US Department of Justice is additionally starting the investigation into how the banking institution went to its closure.

SEC Probes into SVB Executives’ Stock Sales before Crash

Particularly, the distinct investigation is at present going through its preliminary stages, as per the sources acquainted with the matter. SVB Financial’s closure is categorized among the most concerning changes in the world of banking in recent times. Subsequently, while witnessing the biggest banking failure in the financial sector since 2008, the market responded with several concerns after the start of trading on Monday.

At present, the news platform has brought to the front that the securities regulatory agency of the United States is carrying out an inquiry on the SVB. The target of the investigation takes into account the stock sales performed by the executives at Silicon Valley Bank before the platform’s crash. Particularly, the regulatory entity is starting an exclusive inquiry into the banking failure at a time when the Department of Justice is also involved in an analogous investigation.

It is not new for the securities regulator to investigate a big financial organization. Nonetheless, the report brings to the front that this development indicates that the SEC is moving toward an exclusive subject for an investigation. The failure of the SVB began a few days back. As the banking institution pleaded for capital as well as a potential sale, the FDIC sent it into receivership on Friday. In the end, it was shut down, instantly followed by the subsequent closure of Signature by the regulatory authorities.

Coinbase Demands Adequate Rules and Guidance from the SEC to List Securities

On the other hand, the prominent crypto exchange Coinbase responded to the SEC. the platform declared that the assets listed by it cannot be labelled as securities. Nonetheless, it demanded adequate rules and guidance from the securities regulator and assured that it would list securities in line with them.

Coinbase noted this in its amicus brief. Nonetheless, it added that the willingness of the SEC to operate in collaboration with the platform in a productive manner has been restricted. The respective brief has been filed in a case against a former Coinbase employee Ishan Wahi who has been sued by the securities regulator for securities fraud.