C-Level Executives Sold Shares Weeks Before SVB Failed

A bank failure of this proportion has not been seen since 2008 when Washington Mutual failed. The majority of deposits in Silicon Valley Bank (SVB) are uninsured, meaning the FDIC’s $250,000 protection does not apply. Uninsured depositors will be provided receivership certificates and should receive an advanced dividend this week. The FDIC must sell off the remaining assets of SVC to determine how much it can provide to those uninsured depositors. The FDIC is encouraging borrowers to continue paying their existing loans. The bank was said to host $209 billion in assets and $175.4 billion in deposits as of December 2022. Washington Mutual held around $307 billion in assets when it went down.

Tons of people and businesses will be completely screwed over. Who could have seen it coming? Silicon Valley Bank CEO, CFO, and CMO sold off millions in stock over the past two weeks. President and CEO Greg Becker sold 12,451 shares on February 27 for $3.6 million at $287.42 per share. Later that day, he purchased options for the same amount of shares at $105.18 a piece. He did the same thing in December 2021, as this is not an uncommon albeit unethical practice. Banks commonly trade against their own clients. Becker sold about $3.57 million worth of SVB stock over the past two weeks and is now making TV appearances saying he did not see this coming.

There were signs of trouble, but the talking heads said otherwise. Forbes even listed SVB Financial Group as #20 on its list of America’s Best Banks in an article published on February 14, 2023. Talking/screaming head Jim Cramer came out last month to say that SVB Financial would become one of the top performers on the S&P. This is why you cannot listen to information based on biased opinions. I hesitate to call this negligence technical analysis.

Companies are now at a complete loss, many cannot make payroll, and this situation will only worsen once the uninsured depositors realize their IOUs are worthless.


The post C-Level Executives Sold Shares Weeks Before SVB Failed first appeared on Armstrong Economics.

Latest Posts

US Govt Shutdown Over Ukraine?

It happens every year – the US Congress cannot disagree so they may simply shut down. They’re our public servants but we permit them to throw their hands up and [...]
Read more

Soros Targets Media in Maine

Alex Soros confirmed that he will be focusing his attention on having Joe Biden re-installed as president. The Soros family and the Open Society Foundation are no strangers to using [...]
Read more

I Will Be Speaking Next Week In Sweden

Special_Invite_OnGuardStockholm-3day_18092023_final (2) This conference is rather unique. This is blending the manipulation of COVID tactics to control society and the financial backdrop behind the agenda that has been the motivation [...]
Read more