{"id":20633,"date":"2023-05-06T20:51:47","date_gmt":"2023-05-06T20:51:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-probes-first-republic-bank-executives-for-insider-trading-lawmakers-dump-banks-shares-before-collapse-bitcoin-news\/"},"modified":"2023-05-06T20:51:47","modified_gmt":"2023-05-06T20:51:47","slug":"sec-probes-first-republic-bank-executives-for-insider-trading-lawmakers-dump-banks-shares-before-collapse-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-probes-first-republic-bank-executives-for-insider-trading-lawmakers-dump-banks-shares-before-collapse-bitcoin-news\/","title":{"rendered":"SEC Probes First Republic Bank Executives for Insider Trading; Lawmakers Dump Bank’s Shares Before Collapse \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After the second largest bank failure in history, the U.S. Securities and Exchange Commission (SEC) is reportedly investigating First Republic Bank executives for allegedly engaging in insider trading. Two sources have claimed that the securities regulator is scrutinizing the bank\u2019s executives for making trades using confidential information. Although the sources have not named any specific individuals under investigation, they assert that the SEC is looking into the matter. Furthermore, reports indicate that U.S. lawmakers sold shares of the troubled bank before it collapsed and was acquired by JPMorgan Chase. <\/strong><\/p>\n

Securities Watchdog Investigates First Republic Execs<\/h2>\n

On May 1, 2023, the California Department of Financial Protection and Innovation (DFPI) took control<\/a> of First Republic Bank, a San Francisco-based financial institution, and placed it under the receivership of the Federal Deposit Insurance Corporation (FDIC). With $229 billion in assets, this was the second largest bank failure<\/a> in U.S. history, following the 2008 collapse of Washington Mutual (Wamu).<\/p>\n

In the wake of the First Republic Bank\u2019s collapse, Sabrina Willmer and Austin Weinstein, reporters for Bloomberg, revealed<\/a> that \u201ctwo people familiar with the matter\u201d disclosed that the Securities and Exchange Commission (SEC) is investigating the bank\u2019s executives for potential insider trading schemes. This development comes on the heels of the SEC\u2019s investigation into the executives of Silicon Valley Bank, whose failure resulted in the third-largest bank collapse in U.S. history.<\/p>\n

According to Willmer and Weinstein, when they reached out to the SEC and JPMorgan Chase for comment on the alleged investigation into First Republic Bank, representatives from both entities \u201cdeclined\u201d to provide a statement. The sources who disclosed the investigation did not identify any specific executives from First Republic, and the reporters emphasized that no one from the bank has been accused of any misconduct.<\/p>\n

U.S. Lawmakers Dump First Republic Shares Prior to Bank\u2019s Failure<\/h2>\n

In addition to the information provided by Willmer and Weinstein\u2019s sources, several other reports<\/a> suggest that U.S. lawmakers sold off their shares in First Republic prior to its collapse. During the fallout of First Republic Bank, Florida Democrat Lois Frankel disclosed<\/a> that she had sold her shares in the bank prior to its collapse and had instead invested in JPMorgan Chase. In an interview with CNN, Frankel explained that her stocks are \u201cmanaged independently by a money manager who buys and sells stocks at his discretion.\u201d<\/p>\n

This isn\u2019t the first time that U.S. officials have been accused of selling off stocks before a market crash. In the midst of the Covid-19 pandemic, several members of the United States Senate were accused<\/a> of violating the 2012 STOCK Act. However, no charges were filed against the lawmakers and the cases were eventually closed. In a 2022 editorial, the New York Times reported<\/a> that 97 members of the U.S. Congress had reported trades in companies that were \u201cinfluenced by their committees.\u201d<\/p>\n

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Banking Industry<\/a>, California Department of Financial Protection and Innovation<\/a>, FDIC<\/a>, First Republic Bank<\/a>, insider trading<\/a>, JPMorgan Chase<\/a>, lawmakers<\/a>, SEC<\/a>, Silicon Valley Bank<\/a>, STOCK Act<\/a>, U.S. Congress<\/a>, U.S. Senate<\/a><\/div>\n<\/div>\n

What are your thoughts on the recent allegations of insider trading by First Republic Bank executives and the reported sale of shares by U.S. lawmakers prior to the bank\u2019s collapse?<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, rarrarorro \/ Shutterstock.com<\/em><\/p>\n

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