• Signature Bank’s executives have reportedly sold over $100 million of shares in the years after the bank shifted its focus to attract cryptocurrency companies.
• The trio, whose sales accounted for around half of the amount sold, served on the board committee that was responsible for monitoring the risk profile of the bank over the past year.
• After embracing the crypto industry during the bull run, Signature’s deposits surged by 68% in 2021 and launch of the bank’s shares recorded a 140% gain in the same year.

Signature Bank Executives Secretly Sold $100M in Stock

Filings with the FDIC reportedly helped Signature Bank’s executives to escape notice from investors and services that monitor insider trades. The insiders of now-defunct Signature Bank have reportedly sold over $100 million of shares in years after it shifted its focus to attract cryptocurrency companies.

Who Sold Shares?

According to an analysis conducted by Wall Street Journal, signature bank’s chairman, former chief executive officer and his successor collectively sold around $50 million worth of shares over past three years. The trio who accounted for half total sales served on board committee which was responsible for monitoring risk profile of bank over past year.

Crypto Industry Attracted Deposits

After embracing crypto industry during bull run, signature’s deposits surged by 68% in 2021 while launch of banks share recorded 140% gain in same year giving insiders opportunity to rake up approximately $70 million from sale alone.

FDIC Filings Help Insiders Escape Notice

Securities rules and filing method also help sales go unnoticed as filings with FDIC helped Signature Bank’s executives escape notice from investors and services monitoring insider trades.

Conclusion

Signature Bank collapse on March 12 was part of series of bank closures including Silvergate Capital and Silicon Valley Bank (SVB). Insider transactions were shrouded with mystery because they weren’t provided clarity in official documents as per WSJ research conducted recently which estimates insiders raked up $70 million from sale alone despite collapse due to shift towards crypto industry attracting deposits leading to 140% increase in stock value but not enough avoid ultimate demise of once prominent financial institution.