Washington — The Justice Department has launched an investigation into last week’s collapse of a Silicon Valley bank, three sources familiar with the matter confirmed to NBC News on Tuesday.
Two sources said the Securities and Exchange Commission has also launched its own investigation.
The investigation comes days after California’s Department of Financial Protection and Innovation closed Silicon Valley Bank for acquisition and safeguarding deposits, naming Federal Deposit Insurance Corp. as its receiver.
According to the FDIC, the closure was the largest bank failure since the 2008 financial crisis and the second largest on record after the collapse of Washington Mutual during that industry-wide downturn.
The Wall Street Journal first reported the DOJ and SEC probe, citing people familiar with the matter. That report said the investigation was in its early stages and may not result in allegations or allegations of wrongdoing.
DOJ declined to comment. The SEC and Silicon Valley Bank did not immediately respond to requests for comment from NBC News.
On Sunday, the Department of the Treasury, the Federal Reserve and the FDIC said the government would refund Silicon Valley bank deposits that exceed the federally insured limit of $250,000.
Meanwhile, President Joe Biden on Monday sought to reassure the public about the situation after Signature Bank failed as well.
“Thanks to my administration’s swift action over the past few days, Americans can have confidence that the banking system is safe,” Biden said in brief remarks from the White House. “Your deposits will be there when you need them.”
