IMPORTANT POINTS:
- The SEC is investigating First Republic Bank executives for alleged insider trading.
- There is no indication of which executives are being investigated, and neither JP Morgan nor the SEC have commented on it.
- The regulator is conducting similar investigations into activities during the Silicon Valley Bank collapse.
The United States Securities and Exchange Commission (SEC) is launching an investigation into First Republic Bank executives for alleged insider trading. According to Bloomberg, the investigation is looking at the conduct of the executives before the bank was seized and sold to JP Morgan Chase & Co.
The SEC is specifically investigating whether members of the executive team improperly traded using inside information. However, there is no indication of which executives are the subject of the investigation revealed today.
Representatives for JP Morgan and the SEC have declined to comment for now. The fall of First Republic Bank is one of many bank failures that have occurred this year. First Republic was sold to the bank following the US government seizure on Monday. Subsequently, the sale came after a period of heavy losses faced by the financial institution last week.
The SEC is conducting similar investigations into activity that took place at Silicon Valley Bank, that investigation concerns the collapse that took place in March.
