First Republic Bank Executives Under Investigation by SEC

The US Securities and Exchange Commission (SEC) will look into claims that leaders at First Republic Bank traded on inside information. Bloomberg also said that the probe is looking at how the bank’s leaders acted before the bank was taken over and sold to JP Morgan Chase & Co. 

The SEC is looking into whether or not its top team members did anything wrong by trading on inside information. Also, two people who knew about the situation told others about the investigation and what it was about. 

JUST IN: 🇺🇸 SEC launches investigation into First Republic Bank $FRC executives for insider trading.

— Watcher.Guru (@WatcherGuru) May 5, 2023

SEC Investigates First Republic Bank Insider Trading

This year, there have been a lot of bank crashes. One of them was the fall of the First Republic Bank. Also, the decision was made after the same thing happened to both Silicon Valley Bank and Signature Bank. On the other hand, the SEC is looking into claims that leaders at First Republic Bank traded on inside information. 

In particular, the US government is looking into whether leaders who used private information to make deals were right to do so. But there is no sign of which executive members are being looked into in today’s announced probe. 

At this point, both JP Morgan and the SEC have declined to say anything. On the other hand, the bank bought First Republic after the US government seized it on Monday. The sale happened after the bank had lost a lot of money over the last week. 

Similarly, the SEC is looking into trade behavior at Silicon Valley Bank. Also, the focus of that probe is the fall that happened in March.