Silicon Valley Bank CEO sold $3.6B of stock two weeks before bank failed

[Yo_Mama_Been_Loggin]

SVB Financial (NASDAQ:SIVB) President and CEO Gregory Becker sold almost $3.6M of SIVB shares about two weeks before the company's Silicon Valley Bank failed when it was unable to raise capital to shore up its liquidity.

SIVB shares fell 63% in the past week as the bank's troubles mounted. With the clients clamoring to withdraw deposits and the bank unable to raise new capital, the Federal Deposit Insurance Corp. closed the bank on Friday. On Wednesday, March 8, the company unveiled a plan to raise more than $2B from the sale of common and preferred stake and disclosed that it sold its available for sale securities portfolio at a $1.8B loss. By the end of trading on Thursday, SIVB stock sank to $106.04. The stock was halted on Friday.

Through a rule 10b5-1 trading plan established on Jan. 26, the CEO sold 12,451 shares in four transactions on February 27 at an average price of ~$287.42 per share. On the same day, Becker had acquired the 12,451 shares through the exercise of derivatives at $105.18 per share. That implies he made ~$2.3M profit from the transactions.

Also on Feb. 27, Chief Financial Officer Daniel Beck sold 2,000 SIVB shares at $287.59 per share, or ~$575K, through a trading plan he entered on Jan. 24.

https://www.msn.com/en-us/money/companies/silicon-valley-bank-ceo-sold-3-6b-of-stock-two-weeks-before-bank-failed/ar-AA18wpTg

He better retain a lawyer if he hasn't already.

[SunSeeker]

1. Hopefully he will be prosecuted. He ripped people off selling that stock using inside info. nt

[brer cat]

3. Or at least claw it back.

[SunSeeker]

7. Restitution is usually part of the remedy package.

It certainly should be here.

[Hermit-The-Prog]

2. OT: Title indicates $3.6B (billion) instead of $3.6M (million)

[RussBLib]

4. The rats jumping off a sinking ship

They get theirs before everyone knows what going on. Bastards.

[Scrivener7]

5. And I bet he's fined a couple of hundred thousand for doing that, too! That'll teach him!

[ProfessorGAC]

6. Confusing Article

From the article, the transactions involved a little under 25,000 shares at a price of $287.42.
That's a total sale of under $7.2 million.
What happened in those 2 weeks that added to that by a factor of 50?