Silicon Valley Bank boss Greg Becker sold shares two weeks before the collapse
But critics say the pre-agreed share sale plans, known as 10b5-1 plans, have significant loopholes, including a lack of mandatory cooling off periods.
“While Becker may not have anticipated the Jan. 26 bank run when he adopted the plan, raising capital is essential,” said Dan Taylor, a professor at the University of Pennsylvania’s Wharton School who studies corporate transaction disclosures.
Police officers exit Silicon Valley Bank in Santa Clara on Friday.Credit:AP
“If they were discussing a capital increase at the time the plan was approved, that’s highly problematic.”
In December, the SEC finalized new rules that would require a minimum 90-day cooling off period for most executive trading plans, meaning they will not be able to trade on a new schedule three months after they come into effect.
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Managers must comply with these rules from April 1st.
Meanwhile, a Fed spokesman confirmed that Becker is no longer a director of the Federal Reserve Bank of San Francisco.
The change went into effect Friday, the same day SVB-owned Silicon Valley Bank failed and was taken over by state and federal regulators. He became a Class A director on the San Francisco Fed’s main board of directors in 2019, and his departure leaves a vacant seat on the nine-member board.
Bloomberg, A.P
https://www.smh.com.au/business/banking-and-finance/silicon-valley-bank-chief-sold-5-5m-in-stock-two-weeks-before-collapse-20230313-p5crio.html?ref=rss&utm_medium=rss&utm_source=rss_business Silicon Valley Bank boss Greg Becker sold shares two weeks before the collapse
