SEC probing First Republic Bank executives for insider trading, Bloomberg reports
May 5, 2023
The U.S. Securities and Exchange Commission is investigating the conduct of First Republic Bank executives before the government seizure and sale to JPMorgan Chase & Co (JPM.N), Bloomberg News reported on Friday, citing people familiar with the matter.
The SEC is looking into whether any members of the then-executive team of First Republic improperly traded on inside information, according to the report.
The development comes a day after U.S. Senator Elizabeth Warren accused First Republic executives of "mismanagement" in a letter to its former CEO Micahel Roffler and raised questions on the failed lender's risk management as well as pay and bonuses.
Regulators seized troubled First Republic Bank and JPMorgan agreed to buy majority of its assets earlier this week, marking the largest U.S. bank failure since the 2008 financial crisis.
JPMorgan and the SEC declined to comment, while First Republic did not immediately respond to a Reuters request for comment.