US prosecutors probe trading by First Republic's former employees - Bloomberg Law
(Reuters) -U.S. prosecutors are reviewing stock trading by some of First Republic Bank's employees during the lender's recent collapse, Bloomberg Law reported on Wednesday, citing people familiar with the matter.
The Justice Department is looking at whether anyone working at the firm used inside information in transactions as it was crumbling, the report added.
Regulators seized First Republic and sold its assets to JPMorgan Chase & Co in early May, in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis.
The probe, which is at an early stage, is also scrutinizing the company's financial disclosures, Bloomberg Law reported.
In late March, Massachusetts regulators also opened an investigation into sales of company stock by top executives at First Republic in the weeks leading up to the recent banking turmoil.
Spokespersons for the Justice Department and JPMorgan declined to comment.
(Reporting by Manya Saini in Bengaluru and Chris Prentice in New York; Editing by Anil D'Silva)