Two Democrat lawmakers are probing if “mutual backscratching arrangements” between Silicon Valley Bank (SVB) and some of its biggest customers helped fuel its collapse early last month.
Sen. Elizabeth Warren (D-MA) and Rep. Alexandria Ocasio-Cortez (D-NY) have requested responses from some of the largest depositors at the failed bank, to probe the nature of their relationship with the failed lender.
Warren and Ocasio-Cortez sent letters on April 9 to the CEOs of 14 major depositors, including BlockFi, Roku, and Roblox, over their concerns between potential collusion with SVB and some of the largest venture capital firms that kept “massive, uninsured deposits” in it….