SAN FRANCISCO–The Justice Department is looking into whether anyone at the now failed First Republic Bank used inside information as a basis for stock transactions as the bank was falling apart.
According to Bloomberg Law, which was first to report the investigation, the probe, which is at an early stage, is also scrutinizing the company's financial disclosures.
At the time it failed, First Republic had $229.1 billion in assets, knocking the failed Silicon Valley Bank out of second place on the list of the largest bank failures in U.S. history.
First Republic Bank was seized by regulators, placed into conservatorship and then sold to the nation’s largest bank, JPMorgan Chase & Co.
According to Bloomberg Law, in late March Massachusetts regulators also opened an investigation into sales of company stock by top executives at First Republic in the weeks leading up to the recent banking turmoil.
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