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.

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

Brian Lowry

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