In the days prior to the catastrophic collapse of Silicon Valley Bank, the chief executive officer took drastic measures to protect their personal wealth.
They worked in a series of transactions that saw them cashing out a large number of their own shares and distributing bonuses to certain members of the senior management team.
On February 27, SVB CEO Greg Becker sold a total of $2.27 million worth of the bank’s stocks, as per an SEC filing.
Another SEC filing revealed that the CEO had also sold $1.1 million in stocks during January. He did this with the purpose of covering his tax liability.
The timing of these actions is so close to the bank’s eventual demise. However only added fuel to speculation about their knowledge of the impending collapse and whether or not it could have been prevented.
Silicon Valley Bank paid bonuses to its employees
On the 10th of March, Silicon Valley Bank (SVB) made the unexpected move of paying out annual bonuses. This was just a few short hours before the Federal Deposit Insurance Corporation (FDIC) took control of the bank.
Staff members were in surprise by the action but happy about the bonuses. Many of whom had been working in uncertain conditions due to the ongoing pandemic.
The FDIC had been closely monitoring SVB’s financial situation for some time. It remains unclear why SVB chose to distribute the bonuses at such an inopportune moment. However, it is likely that the bank wanted to show its appreciation for its hardworking employees despite their current hardships.
