The Securities and Exchange Commission (SEC) is reportedly investigating executives of First Republic Bank for potential insider trading. According to Bloomberg, no one has been charged yet in the investigation. Bloomberg also reported Saturday that the SEC is looking into possible violations of securities laws related to stock trades made by some current and former First Republic executives before a major acquisition announced last year.
The SEC’s inquiry centers around whether certain individuals had access to nonpublic information about the bank’s plans before they traded shares in advance of its public disclosure on October 8th, 2019. The agency has not commented publicly on this matter as it remains an ongoing investigation at this time.
It is important for investors and shareholders alike that companies maintain ethical practices when it comes to their financial dealings with customers, partners, suppliers, or any other third parties involved in transactions with them directly or indirectly through their affiliates or subsidiaries. All stakeholders should be confident that all parties are acting within legal boundaries so as not to create any unfair advantages over others who may be unaware of such activities taking place behind closed doors without proper oversight from regulatory authorities like the SEC.
Read more at San Francisco Chronicle
