Two of Silicon Valley Bank's top officials dumped millions of dollars worth of stock just two weeks before the firm collapsed on Friday, according to a media report.
CEO Greg Becker offloaded over $3.5 million worth of stocks - which amounted to nearly 12,500 shares - in a pre-planned, automated sell-off on February 27, according to a US Securities and Exchange Commission filing, the New York Post reported.
That same day, the bank's third-in-command CFO Daniel Beck sold $575,180 in stocks, Newsweek reported.
Silicon Valley Bank, the once leading tech lender, was shut down by federal authorities just 11 days later.
Becker and Beck sold off their massive stakes in a legal corporate trading plan established by the SEC to thwart insider trading, so it is not clear whether the CEO and CFO knew the company would collapse in just two weeks, New York Post reported.
The firm was abruptly shut down Friday by the California Department of Financial Protection and Innovation due to liquidity fears.
SVB disclosed it had taken a $1.8 billion hit from a $21 billion fire sale of its bond holdings.
It faced a cash crunch due to surging interest rates and a recent meltdown in the tech sector led many customers to pare their deposits, New York Post reported.
Shares of SVB Financial, the bank's parent, had plunged by a whopping 60% on Thursday. The stock was down by another 60% in premarket trading Friday until being halted.
The sudden collapse has investors worried about a recession event similar to the 2008 financial crisis, though it's not yet clear what the full impact will be, New York Post reported.
Police were called to a Manhattan branch on Friday as depositors swarmed the building in a bid to withdraw money.
Drug peddling: ED raids cop's residence, premises of suspected smugglers in Tripura
The Enforcement Directorate (ED) sleuths on Friday conducted raids in Tripura and searched the residence of a police official and premises of several people allegedly involved in drug peddling and money laundering cases, sources said.
Crucial winter session of Tripura Assembly to begin from tomorrow
The crucial winter session of the Tripura assembly would begin on Friday and a bill would be moved in the House amending the existing law to provide retirement benefits to all MLAs who have served even for just a day, officials said on Thursday.
23 injured in two separate road accidents in Tripura
At least 10 students and a woman suffered breathing problems and six of them immediately shifted to the government-run Govind Ballabh Pant Medical College and Hospital and their condition stated to be not serious.
India well prepared to handle HMPV, surveillance shows no unusual surge: Centre
India is well-prepared to handle respiratory illnesses and surveillance shows no unusual surge in the country, according to the government, as reports surface about rising cases of Human Metapneumovirus (HMPV) in China in the past few weeks.
PM Modi guarantees continuation of free welfare schemes in Delhi
No existing public welfare scheme in Delhi will be withdrawn after BJP comes to power in Delhi, said Prime Minister Narendra Modi on Sunday, virtually guaranteeing the continuation of free water, power and bus travel for women offered by the current AAP government.
Big milestone: Indian metro network now third-largest in the world
India has achieved a remarkable milestone by reaching 1,000 kilometres in its metro network, solidifying its position as the world's third-largest metro system.
‘Jagriti’ awareness drive to aware students about road safety and consumer rights
To make the students aware about road safety and consumer rights, the government is set to launch ‘Jagriti’ – an awareness programme from January 11 next, said minister Sushanta Chowdhury on Saturday.
Ex-CM accuses BJP of divisive politics to mask hide core issues
Former Tripura Chief Minister Manik Sarkar on Saturday criticized the ruling BJP, accusing it of fostering divisions among Hindus, Muslims, Tribals, and Non-Tribals to divert attention from pressing issues such as rising prices, unemployment, and economic hardships.