Insider Trading Probe and Bank Crisis Concerns Shake Financial Industry

Former executives of First Republic Bank are being investigated by the Securities and Exchange Commission (SEC) for possible insider trading prior to the bank's government seizure and sale to JPMorgan Chase. Although no one has been charged with wrongdoing, the large stock sales of some former First Republic execs have drawn headlines. Senator Elizabeth Warren has accused First Republic executives of "mismanagement" and has asked for an explanation for the costly failure of the bank. The SEC does not comment on the existence or nonexistence of a possible investigation.