Greg Becker was a director of the Federal Reserve Bank of San Francisco. He was eliminated the identical day Silicon Valley Bank collapsed.
The transfer was discreet and fast.
On the identical day that Silicon Valley Bank (SIVB) – Get Free Report was shut down by regulators, the title of Greg Becker, its CEO, additionally disappeared from the web site of the Federal Reserve Bank of San Francisco.
Becker was a director of the board till Mar. 10.
To be exact, he was a Class A director of the San Francisco Federal Reserve Bank board. He had held this place since 2019. His seat has been vacant because the failure of his financial institution.
The San Francisco Federal Reserve Bank signifies on its web site that there’s a “vacant seat Group 1,” the seat which was occupied by Becker. His photo has disappeared but there are photos of the other directors.
“Last up to date March 2023,” the Federal Reserve Bank of San Francisco says on its web site.
Each of the regional Federal Reserve Banks has three lessons of administrators: Class A, Class B, and Class C. Class A administrators are elected and characterize the member banks.
Becker together with two different financial institution executives — Simone Lagomarsino and Randolph (Randy) Compton — represented the banks inside the San Francisco Federal Reserve.
The 12 regional Federal Reserve Banks are supervised by the Federal Reserve in Washington. The boards of the regional Federal Reserve Banks supervise the native banks to which they provide recommendation in issues of governance specifically. These boards even have a hand within the course of of choosing new regional Fed presidents within the occasion of a emptiness.
Becker Sold Shares Before SVB Collapse
However, these boards are sometimes singled out by Wall Street critics who denounce a form of collusion between them and the banks they’re purported to supervise.
These criticisms additionally declare that there are conflicts of curiosity between board administrators and the trade. This stems from the truth that the boss of Lehman Brothers was one of many administrators of the New York Fed’s board at first of the 2008 monetary disaster. The collapse of his financial institution on September 15, 2008 is taken into account the spark of the disaster that almost swept away the worldwide monetary system.
The San Francisco Federal Reserve did not reply to a request for remark.
Becker has been below fireplace because the failure of the financial institution he headed, the Silicon Valley Bank, the second-largest financial institution failure in U.S. historical past.
He offered $3.6 million price of SVB shares on Feb. 27, eleven days earlier than SVB was shut down by regulators. This was the results of a run on the financial institution, attributable to the agency’s announcement that it deliberate to lift $2.25 billion by issuing new frequent and convertible most well-liked shares to shore up its funds, after it offered bonds in its portfolio of investments at a $1.8 billion loss.
The query everybody asks is whether or not he was conscious of the capital increase plan.