Justice Dept, SEC probing collapse of Silicon Valley Bank

days after Silicon Valley Bank failed and US financial regulator stepped in to protect account holders many depositors and small business owners are still in shock. We actually got an email saying that like our payroll deposit wouldn't be processed. Now the Justice Department and the Securities and Exchange Commission are each conducting investigations into what led to Silicon Valley banks collapse and what company executives knew about its worsening fiscal health. Why did this happen and happen so suddenly? Two people familiar tell ABC News the two federal probes are just in their preliminary stages and it's unclear if there was any criminal wrongdoing. Silicon Valley Bank also the focus of a new Federal Reserve internal investigation centering on its oversight of SVB but Senator Elizabeth Warren is demanding Fed Chair Jerome Powell recuse himself saying policies he supports allow banks like SVB to meet profits off risky investments. I opposed him for specifically the reason that he was too light on regulations. Warren also introducing a bill to restore some stricter Obama-era bank regulations repealed during the Trump administration.

This wasn't created by Trump. These reportedly managed banks. Republican Congressman Andy Ogles on Fox Business blaming the leadership of Silicon Valley and that of Sinitra Bank, another institution that failed this week for their own downfalls. Sinitra Bank shareholders are suing three former top executives alleging that they misrepresented and failed to disclose adverse facts and fraudulently claimed the bank was financially strong just three days before regulators seized control. Justin Finch, ABC News, Washington.