US federal regulator is investigating the conduct of First Republic Bank executives before the recent collapse, Bloomberg reported, citing people familiar with the matter
WASHINGTON (Pakistan Point News / Sputnik - 06th May, 2023) A US federal regulator is investigating the conduct of First Republic Bank executives before the recent collapse, Bloomberg reported, citing people familiar with the matter.
Earlier this week, US regulators closed San Francisco-based First Republic Bank, which has struggled since the collapse of Silicon Valley Bank and Signature Bank in March. The Federal Deposit Insurance Corporation (FDIC) said JPMorgan Chase N.A. agreed to acquire all of First Republic Bank's assets and deposits, estimated to be worth over $330 billion combined.
The US Securities and Exchange Commission (SEC) is looking into the possibility of insider trading, but it was not clear which former executives of the bank were the focus of the investigation, the report said on Friday.
The FDIC said it will continue to insure deposits at an estimated cost of about $13 billion to its insurance fund. The White House, downplaying the failure of three banks within two months, has said the current banking crisis is very different from the 2008 recession. Heather Boushey, a member of President Joe Biden's Council of Economic Advisers, told Bloomberg on Friday "the situation is under control," and dismissed the need to curb short-selling of banks.
