Before the New York Department of Financial Services seized Signature Bank on Sunday, officials with the Justice Department and Securities and Exchange Commission were investigating the institution to examine whether it took adequate measures to detect potential money laundering by its clients, according to Bloomberg.
Signature's takeover came two days after regulators seized California-based Silicon Valley Bank. Both followed a rush of withdrawals from the banks, which catered to technology businesses.
Signature Bank had more than $110 billion in assets, making it the third-largest banking failure in U.S. history.
The Bloomberg report said the DOJ's offices in Manhattan and Washington were concerned whether the bank was taking preemptive measures to monitor transactions for "signs of criminality."
An SEC spokesperson declined to confirm the report to The Hill but pointed to Chairman Gary Gensler's statement on Sunday about current market events.
"In times of increased volatility and uncertainty, we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly," he said. "Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws."
Information from the Associated Press was used in this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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