The government investigates the Silicon Valley bank failure and insider stock sales

HUNG HOM, Hong Kong - April 25, 2023 - PRLog -- According to the Wall Street Journal, a trust owned by CEO Greg Becker sold SVB shares worth more than $3.5 million less than two weeks before the bank's failure.

The sales were scheduled for January 26 and executed on February 27 in accordance with an SEC rule that permits management to prearrange transactions to avoid accusations of insider trading. However, the scheduling may cause regulators concern: Just 10 days after the trades, the bank disclosed the losses that led to its demise.

The U.S. Justice Department has opened an investigation into the bank, which was taken over by federal regulators on Friday following a run on deposits by consumers, according to two people familiar with the matter who spoke to the New York Times. In addition to the Securities and Exchange Commission (SEC) and the Federal Reserve, it is investigating the failure of the bank.

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