Ex-Silicon Valley Bank Chief Spotted in Hawaii
Greg Becker, the former CEO of Silicon Valley Bank (SVB), has been spotted in Hawaii with his wife, Marilyn Bautista, after their departure from the bank following its recent collapse. The couple retreated to their $3.1 million Maui townhouse, where they appeared unconcerned with the recent turmoil.
JUST IN: Silicon Valley Bank CEO, who sold $3.5 million $SIVB shares weeks before its collapse, was spotted in Hawaii.
— Watcher.Guru (@WatcherGuru) March 17, 2023
Pre-bankruptcy Stock Sales Investigation
The couple booked first-class tickets to their idyllic island destination and rode in a limo to the San Francisco Airport on Monday, according to the Daily Mail. Becker was seen walking around in shorts and flip-flops in Lahaina, and his custom-built two-story property, located within a gated community, boasts a tennis court, three surf breaks, three swimming pools, and a clubhouse.
Despite appearing relaxed, Becker is being investigated by the Department of Justice (DOJ) for stock sales made before SVB filed for bankruptcy. Only two weeks before the company filed for bankruptcy, the former CEO sold 12,500 shares for about $3.5 million. SVB shareholders are also suing Becker and CFO, Daniel Beck, for allegedly hiding information about the company’s sensitivity to a bank run due to rising interest rates.
SVB’s collapse has raised concerns that other banks might follow suit, given that it was the largest bank by deposits in Silicon Valley and the 16th largest bank in the United States. Goldman Sachs has increased its prediction that the US economy will enter a recession over the next 12 months by 10% points, to 35%, due to the pressure on small banks. However, Treasury Secretary Janet Yellen has assured legislators that the American financial sector is sound.
Becker’s relaxed demeanor following the bank’s collapse has drawn criticism from those who believe he mishandled the situation. The former CEO’s extravagant lifestyle is also drawing scrutiny, given that taxpayers could bear the cost of salvaging SVB and Signature Bank if their shortfalls are not covered by successful sales.