The US Securities and Exchange Commission (SEC) has initiated a probe into First Republic Bank executives for potential insider trading. However, the investigation focuses on executive conduct before the bank’s seizure and subsequent sale to JP Morgan Chase & Co.
Investigating trades made using insider information
The SEC’s inquiry aims to determine if First Republic Bank’s executive team members traded improperly using privileged information. Sources familiar with the investigation have disclosed its existence and the nature of the allegations, although it is unclear which executives are currently under scrutiny.
Neither JP Morgan nor the SEC has commented on the matter at this time. Following its seizure by the US government, First Republic was sold to JP Morgan Chase & Co. after facing significant losses.
First Republic Bank among several bank failures this year
First Republic Bank’s collapse is among numerous bank failures observed this year, including Silicon Valley Bank and Signature Bank. The SEC is also investigating trading activity at Silicon Valley Bank, specifically concerning the bank’s collapse in March.