Tony Webster
The probe is still in its early stages, and it is unclear where federal investigators and prosecutors will concentrate their efforts, according to the newspaper.
The sale of SVB shares by several high-ranking employees of the bank a few weeks prior to the financial company's collapse, per legal experts, is one of the things that may catch the eye of investigators. Millions of dollars were gained by the buyers from the deal.
Experts note that at least a few of the bank's top executives sold shares in accordance with early sales plans made specifically to avoid the appearance that such sales were an illegitimate use of insider knowledge.
For this reason, the securities' quantity and sale date are predetermined. Gregory Becker, a former executive of the bank, exercised his put option in early March and sold shares worth about $3 million as an illustration of this. The top executives of the bank that failed, though, have already been advised to return the funds they received from the sale of shares, according to some lawmakers.
source: nytimes.com
The sale of SVB shares by several high-ranking employees of the bank a few weeks prior to the financial company's collapse, per legal experts, is one of the things that may catch the eye of investigators. Millions of dollars were gained by the buyers from the deal.
Experts note that at least a few of the bank's top executives sold shares in accordance with early sales plans made specifically to avoid the appearance that such sales were an illegitimate use of insider knowledge.
For this reason, the securities' quantity and sale date are predetermined. Gregory Becker, a former executive of the bank, exercised his put option in early March and sold shares worth about $3 million as an illustration of this. The top executives of the bank that failed, though, have already been advised to return the funds they received from the sale of shares, according to some lawmakers.
source: nytimes.com
