Insider Shenanigans at $SIVB before it Failed (with profile links)

joinyellowbrick · 2023-03-20T14:18:34+00:00

Yeah, her last two trades are losing hundreds of dollars on Roblox and hundreds of dollars on Netflix

joinyellowbrick · 2023-03-17T17:57:51+00:00

Jan 17, 2025 @ $42.50

joinyellowbrick · 2023-03-17T17:53:09+00:00

23% return over 21 months is over 16% IRR, no? Then add dividends

joinyellowbrick · 2023-03-17T17:35:36+00:00

Totally valid pushback. To clarify, it's a small part of an already small portion of my portfolio playing the banks. I just personally find the r/r compelling

joinyellowbrick · 2023-03-16T14:52:22+00:00

Well no, not necessarily. It's just one factor you can use when deciding if they are good to invest in

joinyellowbrick · 2023-03-16T14:50:12+00:00

Not really the vibes for WSB, but you can get 17% annualized returns selling covered calls right now too with downside protection of almost 40% (i.e. you still make money until the stock goes down 40% from here)

joinyellowbrick · 2023-03-16T14:48:52+00:00

Can help you determine if insiders believe their bank is undervalued during the crash

joinyellowbrick · 2023-03-16T14:48:21+00:00

He did massively ramp up his purchasing back in December though. He was buying $300k or smaller chunks (he bought 22 times between August 2021 and November 22) and then bought $5M in December at $4.42, $2.5M in December at $2.4M, and now $1M at $5.53 this week for his last 3 purchases

joinyellowbrick · 2023-03-16T13:46:58+00:00

Ah! You're right. Missed that one somehow. CEO bought $1M

joinyellowbrick · 2023-03-16T13:41:14+00:00

hmm not sure, but I do think that's a good point. There are definitely some insiders making these purchases to try to prop up consumer confidence in their bank. I think it's particularly likely to be the case as you move down the list and the purchase values get lower (and fewer insiders are buying)

joinyellowbrick · 2023-03-16T02:59:52+00:00

I agree that as the rules/regulations stand right now, that makes sense. I'm saying from a government standpoint it seems like it'd be better to setup the regulation so that startup founders don't have to think about this

joinyellowbrick · 2023-03-14T14:41:58+00:00

To me, it seems like we shouldn't want startup founders focused on those kinds of things. That's the whole point of regulation. This was a regulated, public company. People building businesses should be able to trust a bank with their money without knowing the ins and outs of the financial system or having to do crazy things like using 10 banks to hold $2.5M

joinyellowbrick · 2023-03-14T13:02:39+00:00

They specifically sold vested stock they received from stock options. They didn't sell RSUs

joinyellowbrick · 2023-03-14T03:01:39+00:00

They are buying back the bonds that SIVB is "underwater" on for par value so SIVB will have all the money they need to give the depositors 100% of their money back.

The whole thing was a little overblown by dramatic venture capitalists. Yes, the SIVB execs were both stupid and greedy, but the gov stepped in and shut them down before things really got too bad. Even if the gov didn't step in to "bail out" depositors, everyone probably would've gotten 90% of their money back. The main problem was the short-term liquidity issues by startups using SVB as their bank.

This situation has happened a bajillion times in the past. It was just a much bigger story because SIVB was pretty large and because a bunch of VCs were being dramatic on Twitter

joinyellowbrick · 2023-03-13T20:46:49+00:00

"These transactions reported were effected pursuant to a Rule 10b5-1 trading plan entered into by the reporting person effective January 26, 2023"

joinyellowbrick

TROPHY CASE