By Scott Kanowsky
Investing.com -- U.S. authorities from the Justice Department and Securities and Exchange Commission are investigating the failure of Silicon Valley Bank following a move by regulators to take over the California-based lender last weekend in the wake of a run on its deposits, according to a report in the Wall Street Journal on Tuesday.
Citing people familiar with the matter, the paper said that officials from the Justice Department and SEC are also looking into stock sales made by SVB executives in the days leading up to the collapse. The probe involves prosecutors from the Justice Department's offices in Washington and San Francisco, the WSJ quoted the people as saying.
The probe is in its preliminary stage and may not lead to formal charges or allegations of wrongdoing, the WSJ added.
The SEC and a Justice Department spokesperson declined to comment to Reuters, while SVB was not immediately available for comment.