03-12-2023, 11:00 PM
Without making an accusation in this specific case, I would note that the SEC has been cracking down on insider trading from pre-arranged trades
https://www.bloomberg.com/news/articles/...#xj4y7vzkg
If the insider has control on when good or bad news is released, and times the release to occur before or after a scheduled sale, it can be insider trading. In this particular case, the panic was spurred by Silicon Valley Bank’s announcement that it was going to try to raise $2.25 billion in an equity sale.
https://www.bloomberg.com/news/articles/...#xj4y7vzkg
If the announcement of the attempted raise was made after the insiders sold their stock, and if the timing of that announcement (both big ifs) was influenced by the impending stock sale, this could still be an insider trading. The equity raise was announced March 8: https://ir.svb.com/news-and-research/new...fault.aspx. That was just over a week after the CEO’s stock sale (Feb. 27), so it all depends on when he knew that SVB needed to do an equity raise.
BC
https://www.bloomberg.com/news/articles/...#xj4y7vzkg
If the insider has control on when good or bad news is released, and times the release to occur before or after a scheduled sale, it can be insider trading. In this particular case, the panic was spurred by Silicon Valley Bank’s announcement that it was going to try to raise $2.25 billion in an equity sale.
https://www.bloomberg.com/news/articles/...#xj4y7vzkg
If the announcement of the attempted raise was made after the insiders sold their stock, and if the timing of that announcement (both big ifs) was influenced by the impending stock sale, this could still be an insider trading. The equity raise was announced March 8: https://ir.svb.com/news-and-research/new...fault.aspx. That was just over a week after the CEO’s stock sale (Feb. 27), so it all depends on when he knew that SVB needed to do an equity raise.
BC