Tag: SVB

Fed, SEC Probing Goldman Sachs’s Role in SVB’s Final Days – WSJ

The Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs’s role in buying Silicon Valley Bank’s securities portfolio while it was working on its doomed capital raise before the bank’s failure, according to people familiar with the matter. The Justice Department has also subpoenaed Goldman as part of its investigation into SVB, some of the people said.…

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Sen. Warren, Rep. Ocasio-Cortez Ask Circle, BlockFi Why They Banked at Silicon Valley Bank

Sen. Elizabeth Warren (D-Mass.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) want to know why crypto companies, including bankrupt crypto lender BlockFi and stablecoin issuer Circle, banked at now-collapsed Silicon Valley Bank. The lawmakers sent letters to BlockFi and Circle on Sunday with a list of questions and concerns. Twelve other non-crypto firms received similar letters. The two Democratic lawmakers are looking…

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KPMG, Goldman Sachs, Morgan Stanley and Bank of America Sued Over SVB Failure – Bloomberg

KPMG LLP was sued as Silicon Valley Bank’s auditor, along with underwriters including Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley & Co. in an investor lawsuit based on alleged misstatements leading to the bank’s collapse. Similar to previous suits, a complaint filed Friday in the federal court in San Francisco names Silicon Valley Bank Chief Executive…

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Silicon Valley Bank’s risk model flashed red. So its executives changed it. – The Washington Post

In buying longer-term investments that paid more interest, SVB had fallen out of compliance with a key risk metric. An internal model showed that higher interest rates could have a devastating impact on the bank’s future earnings, according to two former employees familiar with the modeling who spoke on the condition of anonymity to describe confidential deliberations. Instead of heeding…

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Elizabeth Warren Calls for Investigation of SVB and Signature Bank Collapses – WSJ

Sen. Elizabeth Warren (D., Mass.) called for an independent investigation into the recent failures of two U.S. regional banks, Silicon Valley Bank and Signature Bank. In a letter Sunday to the inspectors general of the Treasury Department, the Federal Deposit Insurance Corp. and the Federal Reserve, Ms. Warren called for the probe to examine the management and oversight of the…

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Justice Department, SEC Investigating Silicon Valley Bank’s Collapse – WSJ

The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, according to people familiar with the matter, after the California lender was taken over by regulators last week amid a historic run on its deposits. The separate probes are in their preliminary phases and may not lead to charges or allegations of wrongdoing.…

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Well, That Didn’t Take Long: SVB’s Holdco and Execs Hit with Securities Suit | The D&O Diary

In my post yesterday discussing the implications of Silicon Valley Bank’s failure, I discussed the likelihood that D&O claims could arise in the wake of the failure. It has not taken long for this possibility to materialize. In morning (west coast time) on Monday, March 13, 2023, a plaintiff shareholder filed a securities class action lawsuit against SVB’s parent holding…

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Silicon Valley Bank Clients Can Fully Access Funds After FDIC Creates New Bridge Bank

Depositors of Silicon Valley Bank (SVB) will have full access to their money beginning Monday morning, the Federal Deposit Insurance Corporation said (FDIC), after confirming a successful transfer of deposits to a new bridge bank. The new bridge bank called Silicon Valley Bank N.A., which will be operated by the FDIC, will have normal opening hours, and customers have been…

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What Does the Failure of Silicon Valley Bank Mean? | The D&O Diary

In a development that has an all-too-familiar feel, on Friday March 10, 2023, banking regulators closed California-based Silicon Valley Bank (SVB), in what is the second-largest banking failure in U.S. history. The closure of the country’s 16th largest bank has sent shivers through the financial sector, raising questions about other lending institutions. For those of us in the D&O insurance…

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