As SVB's Risk Rating Sank, CEO Cashed Out Nearly $30M, Court Hears
By CU Today Staff —
SAN FRANCISCO—Former Silicon Valley Bank CEO Greg Becker testified during a California federal bench trial that he received millions of dollars in compensation and sold nearly $30 million in company stock as regulators were downgrading the bank’s risk-management rating ahead of its 2023 collapse, Law360 reported.
The testimony came in the FDIC’s case accusing former SVB executives and directors of mismanaging the bank before it failed. Reuters has reported the FDIC sued 17 former executives and directors, including Becker, seeking to recover billions of dollars tied to alleged gross negligence and breaches of fiduciary duty.
The FDIC has alleged SVB’s leadership ignored prudent banking standards and the bank’s own risk policies, including warnings tied to interest-rate risk, liquidity risk and its heavy exposure to long-term bonds. The D&O Diary, citing the FDIC complaint, reported the agency described the case as one involving “egregious mismanagement” of those risks.
The trial follows the March 2023 failure of SVB, one of the largest bank collapses in U.S. history, after a rapid depositor run forced regulators to take over the institution. Law360 reported Becker’s compensation, stock sales and the bank’s declining regulatory reviews were a central focus of the examination.
Originally reported by CU Today.