The employees of the failed Silicon Valley Bank were given their annual bonuses only hours before the bank failed and was taken over by regulators.
TGP reported on the failed Silicon Valley Bank on Friday. This bank is used by numerous startups and tech companies in Silicon Valley. It’s the largest bank to fail since Washington Mutual in 2008.
We learned that the top executives in the bank sold their stock weeks before the crash. This appears to be based on insider information and therefore illegal.
CNBC reported yesterday that hours before the bank failed, the bank paid its employees their annual bonuses:
Silicon Valley Bank employees received their annual bonuses Friday just hours before regulators seized the failing bank, according to people with knowledge of the payments.
The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified speaking about the awards. The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.
These actions don’t appear to be ethical or legal. This is not good and these managerial decisions are an indication of why the bank might have gone under.
