CALIFORNIA REPS CALL FOR INVESTIGATION INTO THE ORIGIN OF THE SVB CRISIS
Eight Members from the California delegation sent a letter to the U.S. Securities and Exchange Commission urging further investigations
WASHINGTON, D.C. -- Today, U.S. Representatives Eric Swalwell (CA-14) and Brad Sherman (CA-32) formally requested an investigation to the heads of the U.S. Securities and Exchange Commission (SEC), calling on the agency to examine the origins of the Silicon Valley Bank (SVB) crisis. Specifically, the lawmakers urged the SEC to determine whether unlawful insider trading occurred leading up to the bank's collapse.
The letter was co-signed by U.S. Representatives Lofgren (CA-18), Mullin (CA-15), Gomez (CA-34), DeSaulnier (CA-10), Takano (CA-39), and Porter (CA-47).
"It is possible that, with respect to SVB stock, market participants engaged in manipulative activities and shorted equities, bought put options, or used other methods that would lead to unlawful profits stemming from the impact of the SVB bank run," the members wrote. "Significantly, the SEC should investigate whether market participants, bank employees, or others with insider knowledge—material non-public information—traded on such knowledge illegally to the detriment of others in the market."
Full text of the letter can be found here.
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