<p>The <a href="https://www.dailywire.com/topic/department-of-justice" target="_blank" rel="noopener">Department of Justice</a> (DOJ) and the <a href="https://www.dailywire.com/topic/securities-and-exchange-commission" target="_blank" rel="noopener">Securities and Exchange Commission</a> (SEC) are reportedly investigating the collapse of Silicon Valley Bank (SVB) after it suffered a fatal run on deposits last week.</p>
<p>The DOJ and SEC are leading separate probes into the bank’s failure, which prompted regulators to take it over on Friday, according to <a href="https://www.wsj.com/articles/justice-department-sec-investigating-silicon-valley-banks-collapse-c192c2b2" target="_blank" rel="noopener">The Wall Street Journal</a>. These types of inquiries are often initiated after financial institutions experience unexpected and heavy losses, and the investigations do not necessarily mean that criminal charges will be filed.</p>
<p>Such investigations typically look at the role executives played in the weeks and months leading up to the collapse. Investigators may consider whether SVB properly characterized its financial health and risks to investors before its collapse.</p>
<p>The Federal Deposit Insurance Corporation (FDIC) took over SVB last week after the bank experienced a run from customers that attempted to withdraw roughly $42 billion, about a quarter of the bank’s total deposits, in one day. The run was <a href="https://www.nationalreview.com/2023/03/the-real-reason-silicon-valley-bank-collapsed/" target="_blank" rel="noopener">triggered</a> by SVB’s own attempts to raise equity capital to shore up its finances before an expected credit downgrade, which, when revealed to customers, sent requests for withdrawals pouring in.</p>
<p>The value of shares of SVB Financial Group, which owned SVB before the FDIC took the bank over on Friday, dropped 60% last week. The shares have been frozen from trading since.</p>
<p>SVB Financial Chief Executive Greg Becker and CFO Daniel Beck both exercised stock options and sold large quantities of shares the week before SVB collapsed, according to WSJ. Becker sold 12,451 shares on Feb 27 for about $2.3 million. Beck sold about one-third of his shares for about $575,000 on the same day. The sales had been part of plans filed 30 days earlier.</p>
<p>SVB’s customer base is relatively unstable, according to David Bahnsen, founder of the asset management company The Bahnsen Group.</p>
<p>“How did the bank suffer a large amount of depositor withdrawals in just a 24-hour period merely because of a Moody’s downgrade threat and word of valuation trouble on their bond portfolio? Because the bank almost entirely banks start-up tech companies funded by venture capital, the venture capital sponsors started screaming to withdraw funds. It was a classic run on the bank. And this deposit base was, shall we say, not the epitome of stability and sensibility. IPO proceeds from non-profitable tech companies. SPAC money. Crypto companies. This was a walking who’s who of shiny objects,” Bahnsen wrote in a Monday <a href="https://thebahnsengroup.com/dividend-cafe/special-silicon-valley-bank-dividend-cafe-march-13/">blog post</a>.</p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

DOJ, SEC Launch Probes Into Silicon Valley Bank Collapse: Report

CONTINUE READING

Trump Says Netflix Should Fire ‘Racist, Trump Deranged’ Susan Rice

Trump Orders Release Of ‘Any And All’ Info On Aliens And UFOs

Man Targets DHS Building With Stolen Ambulance In Attempted Arson Attack

Bill Gates Drops Out Of Keynote Speech Last Minute As Epstein Rumors Swirl

Trump Left The World Health Org Last Year. Now, He’s Replacing It.

One Of The CDC’s Biggest Critics Is Now In Charge Of The Whole Thing

News

Banks

California

Department of Justice

Economy

Securities and Exchange Commission

Silicon Valley Bank

U.S.

Washington D.C.

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

DOJ, SEC Launch Probes Into Silicon Valley Bank Collapse: Report