Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC

Re:Joint Statement by the Department of the Treasury, Federa... by moffkalast on Sunday March 12, 2023 @06:51PM (#35127497)

You mean those executives that sold their shares of the bank weeks before, ending up with with fat stacks and completely unaffected?

Yeah I kinda doubt they'll get what's coming to them unfortunately. Insider trading's only a crime when it's poor people doing it.

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Re:Joint Statement by the Department of the Treasury, Federa... by kristjansson on Sunday March 12, 2023 @07:30PM (#35128120)

This is … quite the misrepresentation though? No one sold their entire stake, one executive’s (albeit, sure, the CEO) pre-planned sale of a small portion of his holding executed two weeks ago.

Not a great look, but quite from what you’re insinuating.

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Re:Joint Statement by the Department of the Treasury, Federa... by moffkalast on Sunday March 12, 2023 @07:35PM (#35128196)

Well the notes I've seen is the CEO selling 11%, General Counsel selling 19%, CFO selling 32%, and CMO 25%, and that's just in February. I would call that notable at the very least, and assume they sold the rest in March if they had any sense.

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Re:Joint Statement by the Department of the Treasury, Federa... by kristjansson on Sunday March 12, 2023 @09:32PM (#35129473)

None of those people could sell anything (never mind everything) in March without violating law, unless that selling aligned with preexisting 10b5 plans to sell. You can look at the insider action[0] yourself, everything but the Becker sale looks like routine sale / disposition of options/equity comp, and even that isn’t that aberrational compared to his sales in ‘22 and ‘21.

I think you’re right about the proportional sizes, but it looks like the other officers only held a few thousand shares each, so routine grant/sale transactions were a much larger share of their individual holdings.

[0] https://www.nasdaq.com/market-activity/stocks/sivb/insider-a...

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Re:Joint Statement by the Department of the Treasury, Federa... by mgraczyk on Sunday March 12, 2023 @06:55PM (#35127583)

Do you think punishing depositors would disincentivize those executives?

And do you have any examples of poor people being charged with insider trading? Every case I have seen is rich people trading.

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Re:Joint Statement by the Department of the Treasury, Federa... by cowl on Sunday March 12, 2023 @07:36PM (#35128205)

Punishing Depositors no but punishing them yes. There should be personal finanacial Clawback and potentially even legal conseguences for this type of mismangement. When Their personal wealth is at risk they will be more careful. As it is right now, they don't risk anything and will try the same thing again. The worst thing that can happen to them is to loose "unrealiasied profits" not loosing anything already realised.

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Re:Joint Statement by the Department of the Treasury, Federa... by tiahura on Sunday March 12, 2023 @10:19PM (#35130011)

There should be personal finanacial Clawback and potentially even legal conseguences for this type of mismangement.

There is. That’s what derivative actions are - a mechanism for shareholders to sure the board and management for breaching their fiduciary duties. My guess is that one will be filled Monday.

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Re:Joint Statement by the Department of the Treasury, Federa... by moffkalast on Sunday March 12, 2023 @07:26PM (#35128054)

Probably not, but it is rather exhausting to see this happen again and again and seeing them get bailed out without consequences every time. At least something would be different.

Maybe it's just hearsay but it feels like every person on wallstreetbets who got lucky with options then got the IRS knocking on their door accusing them of everything in the book. They've said it themselves that with the cost cutting in last decades they don't have the resources to build cases against large players anymore. They go after people they can reliably force to pay up without having to fight them too much. Al Capone would've gotten off scot free in today's world, just like most of congress does despite singlehandedly outperforming the best index funds out there.

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Re:Joint Statement by the Department of the Treasury, Federa... by mgraczyk on Sunday March 12, 2023 @07:34PM (#35128165)

That's tax evasion, not insider trading.

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Re:Joint Statement by the Department of the Treasury, Federa... by creato on Sunday March 12, 2023 @11:02PM (#35130428)

I can’t believe anyone would put any stock in such “evidence”. No one is going to say “yeah, I pushed the limits of tax filing and got busted, nice catch IRS”. They’re going to say “I was just minding my own business when the IRS robbed me with their machine guns”.

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Re:Joint Statement by the Department of the Treasury, Federa... by DANmode on Sunday March 12, 2023 @06:55PM (#35127580)

Not entire, but enough to raise eyebrows, IIRC

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