Silicon Valley Bank collapse

12 March 2023

What happened?

On Friday, 10th of March, Silicon Valley Bank has collapsed following a bank run and capital crisis. The bank's assets will be liquidated to pay back customers. On Wednesday, the bank announced it had sold securities at a loss and would sell $2.25bn in new shares to shore up its balance sheet, which caused panic among venture capital firms. This led to the withdrawal of deposits and the company's stock plummeted. When the Fed raised interest rates to fight inflation, the value of long-dated, seemingly low-risk Treasuries held by banks fell, leaving them with unrealised losses. This left SVB sitting on lower-valued treasury and other securities, which were needed to pay depositors. The collapse is unlikely to set off the kind of domino effect that gripped the banking industry during the financial crisis, according to analysts.

Insiders reports

Insiders – BECKER GREGORY W (President and CEO), Beck Daniel J (Chief Financial Officer), and DRAPER MICHELLE (Chief Marketing Officer) reported sales of shares to the SEC about a week before the collapse.

See SEC Form 4 Latest Filings for SVB FINANCIAL GROUP (Nasdaq: SIVB):

Silicon Valley Bank insiders form 4

Why it is so crucial to get insider trading alerts

The collapse of Silicon Valley Bank has sent shockwaves through the investment community. Many are wondering how they could have missed the warning signs that insiders were selling off their shares just weeks before the catastrophic event.

It's a painful reminder that staying informed about insider trading activity is crucial for protecting your portfolio. Fortunately, receiving fast alerts on insider sales reports, especially those from key executives such as the CEO, CFO, and CMO, can help you keep a close eye on your investments and avoid significant losses.

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