Some of the head executives of First Republic Bank reportedly sold off millions of dollars worth of company stock before the regional bank entered into turmoil.
Bank executives who sold stock this year include the chief risk officer, the chief credit officer, and the executive chairman, per a report from the Wall Street Journal.
$30 BILLION RESCUE OF FIRST REPUBLIC BANK ANNOUNCED BY MAJOR BANKS
The report says Executive Chairman James Herbert has sold $4.5 million worth of shares since the beginning of 2023, while First Republic Bank's chief credit officer, president of private wealth management, and chief executive have sold a combined $7 million worth of stock. The bank's chief risk officer sold stocks days before Silicon Valley Bank failed and set off the current market instability.
Bank of America, Citigroup, JPMorgan Chase, and other major banks announced a $30 billion rescue of First Republic Bank on Thursday afternoon as part of efforts to stabilize the market.
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The San Francisco-based bank had attempted to calm concerns on Sunday by announcing it had "diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co." The bank also said it had $70 billion in unused liquidity. The weekend announcement came the same day Signature Bank was shut down by regulators and days after Silicon Valley Bank failed.
Market uncertainty in the aftermath of the collapse of Silicon Valley Bank has caused panic at financial institutions across the world, including First Republic Bank and Swiss lender Credit Suisse. Credit Suisse received a $53.7 billion boost in capital from the Swiss National Bank on Thursday after concerns over its liquidity.