The banking crisis in the USA is getting worse. Finally, the US government announced that it would seize First Republic Bank.
JP Morgan acquired First Republic Bank earlier this week after news of the bank's closure.
Things did not settle down after JP Morgan bought the bank.
Now the US Securities and Exchange Commission has stepped in.
Two people familiar with the matter said the SEC is investigating First Republic Bank, Bloomberg reported.
The SEC's research covers the period before the bank was seized by the US government and sold to JPMorgan.
One informant told Bloomberg that the SEC was investigating the First Republic's executive team at the time for insider trading.
While it is not known which executives the SEC is investigating, it was stated that the investigation could end without filing a lawsuit against anyone.
Representatives of the SEC and JPMorgan did not respond to Bloomberg's request for comment and declined to comment.
