Commercial banks and other financial institutions were shaken by the recent death of former CEO Mark Sanford.
The Wall Street Journal reported Monday that Sanford’s death is being investigated by the New York State Department of Financial Services, and that the agency is looking into whether Sanford and other executives had improperly concealed the financial losses of their companies from investors.
The report also said the bank Sanford founded, Wells Fargo, was under scrutiny for a massive loss related to the collapse of a major mortgage lender.
Sanford was replaced by John Stumpf, who took over as chief executive in June.
Stumpff is also investigating whether the bank had properly disclosed its role in the mortgage-backed securities market crash.
Sanford’s replacement, Stumpfer, has been in charge of Wells Fargo for three months.
The bank, along with other major banks, has come under intense scrutiny for the role in helping to finance the financial crisis.
Sanford, 63, was a pioneer in the financial sector, helping to found the giant investment bank Lehman Brothers and managing the investment bank Morgan Stanley.
The WSJ reported that Sanford and Stumpflig had been in talks about resigning.
Sanford has been criticized for not aggressively responding to the crisis.
He has been named by President Donald Trump as a target for possible impeachment.
Sanford resigned from the bank in March after a series of controversial statements, including a statement that the government had no authority to force banks to keep records that would allow it to trace the losses of insured banks.
Sanford and his son, Jeffrey, are also the former chief executives of Merrill Lynch, the nation’s largest investment bank.