One potential focus could be sales of company shares by several bank executives in the weeks before the bank’s failure,several legal experts said.
The sales generated millions of dollars in proceeds,although some of the bank’s executives sold stock pursuant to insider selling plans that set the timing of such sales in advance. Such plans are set up by corporate executives to avoid the appearance of trading on confidential information.
For example,under a prearranged plan,Silicon Valley Bank’s former chief executive,Gregory Becker,exercised options in late Februarythat permitted him to sell shares worth about $US3 million for around $US287 a share;the sales were disclosed in a regulatory filing on March 1. The filing also shows the stock trading plan was set up on January 26 when shares of the bank closed at $US296.
Some politicians have said the bank executives should return any money they made from those stock sales.
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Becker could not be immediately reached for comment. The investigation was first reported byThe Wall Street Journal.
It is not uncommon for investigators to look into prearranged stock selling plans when the sales take place shortly before bad news that tanks a company’s stock.