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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInElizabeth 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 […]
Everything is Securities Fraud – Bloomberg
I said above that, as a moral hazard matter, SVB’s executives are out of their jobs and their shares are zeroed, which is a good warning to other risk-loving bank executives. But several of them sold stock just before the failure, so they are not really zeroed, and you can see how that would rub people the […]
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 […]
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 […]
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 […]
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 […]
Startup Bank Had a Startup Bank Run – Bloomberg
And so if you were the Bank of Startups, just like if you were the Bank of Crypto, it turned out that you had made a huge concentrated bet on interest rates. Your customers were flush with cash, so they gave you all that cash, but they didn’t need loans so you invested all that […]