According to persons familiar with the situation, Bloomberg News reported on Friday that the U.S. Securities and Exchange Commission is looking into the actions of First Republic Bank (OTC:FRCB) executives before the government seizure and sale to JPMorgan Chase & Co (NYSE:JPM).
The SEC is reportedly investigating any potential unlawful trading on inside information by former First Republic executives.
First Republic, SEC, or JPMorgan did not immediately answer requests for Reuters’ comments.
The news comes a day after U.S. Senator Elizabeth Warren questioned the risk management, pay, and bonuses at the bankrupt lender and accused First Republic officials of “mismanagement” in a letter to Micahel Roffler, the company’s former CEO.
The First Republic Bank was taken over by regulators, and earlier this week JPMorgan agreed to purchase the majority of its assets, making this the greatest U.S. bank collapse since the 2008 financial crisis.