• Signature Bank’s executives secretly sold over $100 million in shares after the bank moved towards catering to cryptocurrency companies.
• The sales were conducted by the chairman, former CEO and his successor who were on the board committee responsible for risk management.
• The transactions went unnoticed due to a lack of clarity in official documents as well as securities rules and filing method.
Signature Bank Execs Sell Over $100M in Shares
Signature Bank’s top executives have reportedly sold more than $100 million worth of stocks after the bank shifted its focus to attract cryptocurrency companies. According to an analysis conducted by the Wall Street Journal, the chairman, former chief executive officer (CEO), and his successor collectively sold approximately $50 million of shares over the past three years. These sales accounted for around half of all sales made, as they served on the board committee that was responsible for monitoring Signature Bank’s risk profile over the past year.
Insider Transactions Shrouded with Mystery
The transactions made by these insiders have been shrouded with mystery due to a lack of clarity provided in official documents regarding their sales. Furthermore, securities rules and filing methods helped these sales go unnoticed from investors and services that monitor insider trades.
Crypto Industry Embrace Leads To Surges
Signature Bank has been operating for more than two decades before its collapse on March 12th 2021 which was part of a series of other bank closures such as Silvergate Capital and Silicon Valley Bank (SVB). After embracing the crypto industry during its bull run, Signature’s deposits surged by 68% in 2021 while its launch saw its share prices soar 140% within the same year. This surge provided an estimated total profit of $70 million to be taken by all those involved within this transaction including Signature’s insiders.
Securities Rules & Filings Help Sales Go Unnoticed
The securities rules and filing method used also aided these insiders’ sales from going unnoticed from investors or services that monitor insider trades due to a lack of clarity in official documents regarding their sales..
In conclusion, it is evident that Signature Bank’s executives took full advantage when their bank shifted focus towards catering towards cryptocurrency companies leading them to sell off over $100 million worth of stocks avoided being noticed through securities rules & filing methods which provided them with enough secrecy for their sales to go unnoticed until now.