California regulators closed Silicon Valley Bank on Friday.
The FDIC was named receiver.
Via Market Watch:
Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver, becoming the first FDIC-backed institution to fail this year. The news comes amid a crisis at parent SVB Financial Group SIVB, , which lost a record 60% of its value on Thursday, after it disclosed large losses from securities sales and announced a dilutive stock offering along with a profit warning. The FDIC said all insured depositors will have full access to their
accounts no later than Monday morning. Uninsured depositors will get a receivership certificate and may be entitled to dividends once the FDIC sells the bank’s assets.
The bank reportedly holds $173 billion in deposits.
The company provided funding to 44% of all venture capital-backed tech and healthcare companies that publicly listed on a stock exchange last year, according to its website.
The CEO of Silicon Valley Bank Gregory Becker sold $3.5 million in stock in the last two weeks!
He was not alone.
Top Silicon Valley Bank executives also sold shares before the big crash on Thursday and Friday.
* Gregory Becker, CEO, sold 11% on Feb 27, 2023.
* Michael Zucker, General Counsel, 19% on Feb 5.
* Daniel Beck, CFO, sold 32% on Feb 27.
* Michelle Draper, CMO, sold 25% on Feb 1.
These executives all sold shares a bit at a time.
Via Unnamed Whales.
This is interesting.
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