Business

Ex-CEO Greg Becker of failed Silicon Valley Bank refuses to return $10 million

Greg Becker, the former CEO of Silicon Valley Bank, has come under fire for his role in the bank’s failure, but he is defiant in his refusal to return any of the $10 million he received from the defunct lender. Becker attempted to deflect attention away from management failure during his Tuesday testimony before the Senate Banking Committee by attributing the bank’s collapse in March to unusual circumstances, interest rate increases, and unfavourable social media coverage. He repeatedly declined to promise any financial restitution, even though he indicated a willingness to work with regulators on reviewing compensation.

Elizabeth Warren, a Massachusetts Democrat, questioned Becker, who replied, “I promise to cooperate with the regulators as they do a review,” but made no promise to return any of his sizable earnings. Republicans and Democrats have voiced criticism over Becker’s decision to sell $3.6 million worth of company stock through a trading plan just before the bank disclosed sizable losses.

Becker defended the validity of the stock sales at the hearing on Tuesday, pointing out that the bank’s legal counsel had given them the go-ahead. Additionally, he defended his own pay, saying that the bonuses some employees received for their performance in 2022 prior to the bank’s seizure were legitimate and not accelerated. While being questioned, Scott Shay, the former chairman of Signature Bank, opted not to commit to returning any of his pay.

The bank failures cost the government’s deposit insurance fund billions of dollars, forcing it to be replenished by other financial institutions, lawmakers emphasised. In reference to the federal government’s food assistance programme, Pennsylvania Democrat John Fetterman said, “The Republicans want to give a work requirement for SNAP for a hungry family.” He questioned the need for a working requirement after the Federal Deposit Insurance Corporation (FDIC) sold SVB, saying, “Shouldn’t you have one after we sell your bank?”

Malika Sahni

Recent Posts

PM Modi Meets Bhutan PM Tobgay At BIMSTEC Summit; Highlights Strong Bilateral Ties & Regional Cooperation

PM Narendra Modi met Bhutanese PM Tshering Tobgay on the sidelines of the 6th BIMSTEC…

6 hours ago

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

8 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

8 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

9 hours ago

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…

10 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

11 hours ago