{"id":1932369,"date":"2023-05-17T06:10:29","date_gmt":"2023-05-17T10:10:29","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senators-rip-former-silicon-valley-bank-ceo-for-executive-payouts-prior-to-banks-collapse\/"},"modified":"2023-05-17T06:13:34","modified_gmt":"2023-05-17T10:13:34","slug":"senators-rip-former-silicon-valley-bank-ceo-for-executive-payouts-prior-to-banks-collapse","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senators-rip-former-silicon-valley-bank-ceo-for-executive-payouts-prior-to-banks-collapse\/","title":{"rendered":"Senators criticize ex-CEO of Silicon Valley Bank for payouts before bank&#8217;s downfall."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsenators-rip-former-silicon-valley-bank-ceo-for-executive-payouts-prior-to-banks-collapse%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1932369&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Senators Condemn SVB CEO for Bonuses and Stock Sales Before Bank&#8217;s Collapse<\/h2>\n<p>During a Senate Banking Committee hearing on Tuesday, senators criticized Silicon Valley Bank (SVB) CEO Greg Becker for his actions leading up to the bank&#8217;s collapse. Sen. J.D. Vance (R-Ohio) called out Becker for paying himself a $1.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senators-rip-former-silicon-valley-bank-ceo-for-executive-payouts-prior-to-banks-collapse\/\" title=\"Senators criticize ex-CEO of Silicon Valley Bank for payouts before bank's downfall.\">5 million cash bonus<\/a> in 2022, despite the bank&#8217;s value declining by two-thirds. Becker also sold a significant amount of SVB stock shortly before the bank&#8217;s failure.<\/p>\n<p>Committee chairman Sen. Sherrod Brown (D-Ohio) confronted Becker, stating that he was paying out bonuses until hours before regulators seized the bank&#8217;s assets. Brown emphasized that workers suffer the consequences while executives walk away unscathed, and he is working on a bill to empower regulators to reclaim compensation from failed bank executives.<\/p>\n<p>Sen. Bob Menendez (D-N.J.) raised concerns about the Federal Reserve issuing over 30 supervisory warnings to SVB before its collapse, suggesting that Becker may have engaged in insider trading by relying on non-public information. Becker claimed that he regularly sold shares as part of his compensation plan and was unaware of SVB&#8217;s impending troubles when he arranged the sale.<\/p>\n<p>Senators also criticized SVB for its rapid growth and compensation policies that rewarded executives for taking on excessive risks without hedging against the risk of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-to-leapfrog-u-s-as-worlds-biggest-economy-by-2028-think-tank\/\" title=\"China to leapfrog U.S. as world\u2019s biggest economy by 2028 \u2013 think tank\">rising interest rates<\/a>. Sen. John Kennedy (R-La.) pointed out that SVB placed all its bets in one basket and failed to purchase hedges that could have impacted profits and bonuses.<\/p>\n<h3>Impact on Regional Banks<\/h3>\n<p>SVB&#8217;s collapse sparked a crisis of confidence in banks and compelled regulators to safeguard all of SVB&#8217;s uninsured deposits to prevent further <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-100-billion-dollar-ingredient-making-your-food-toxic\/\" title=\"The 100 Billion Dollar Ingredient Making Your Food Toxic\">bank failures<\/a>. Since March, three out of the four <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/large-u-s-banks-view-credit-suisse-exposure-as-manageable-sources\/\" title=\"Large U.S. banks view Credit Suisse exposure as manageable -sources\">largest bank failures<\/a> in the United States have occurred. Most recently, First Republic Bank became a casualty resulting from SVB&#8217;s collapse when regulators shut down the San Francisco-based regional lender and orchestrated its sale to JPMorgan Chase.<\/p>\n<p>Regional banks, which play a vital role as lenders to local businesses, continue to struggle with the cost of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mark-levin-are-usually-we-better-off-these-days-than-we-were-4-years-back-hell-no\/\" title=\"Mark Levin: 'Are usually We Better Off These days than We Were 4 YEARS BACK? Hell No'\">high-interest rates<\/a>. Senators are directing their scrutiny toward Becker due to the collapse of SVB, and they are determined to prevent this pattern from repeating.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SVB stock plummeted,\u201d senators criticized during a hearing. Becker has been accused of selling stock and distributing bonuses before the bank&#8217;s collapse. Senators denounced his actions during a Senate Banking Committee hearing.<\/p>\n","protected":false},"author":602,"featured_media":1932370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[5373,8961,4555,21473,26957,20770,3709,8107,8109],"class_list":["post-1932369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-bank","tag-banks","tag-criticize","tag-downfall","tag-ex-ceo","tag-payouts","tag-senators","tag-silicon","tag-valley"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1932369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/602"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1932369"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1932369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1932370"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1932369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1932369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1932369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}