Justice Department investigating collapse of Silicon Valley Bank, officials say

Washington — The Justice Department has opened an investigation into the circumstances surrounding the collapse of Silicon Valley Bank (SVB), days after it was taken over by federal regulators to stem a bank run that threatened to spread across the U.S. banking industry.

Federal law enforcement officials on Tuesday confirmed the investigation into the bank's collapse, and the probe is said to be in its early stages. The officials spoke to CBS News on the condition of anonymity due to the sensitive nature of the investigation, which was first reported by the Wall Street Journal. The Justice Department declined to comment.

California regulators took control of SVB last Friday after depositors scrambled to withdraw tens of billions of dollars in deposits over fears that the bank could become insolvent. The spreading panic prompted regulators in New York to seize another institution, Signature Bank, on Sunday.