Friday, June 21, 2024

Congressman Sells Shares of SVB Financial Group One Day Before FDIC Takeover – Charles Schwab (NYSE:SCHW)


A member of the US Congress could find himself in hot water for some questionable trades surrounding bank stocks prior to the FDIC’s takeover of the collapsed bank and the falling price of many stocks in the sector.

What happened: repealed. Josh Gottheimer (D-NJ) has been one of the most prolific members of Congress when it comes to trading stocks and options during his time in office.

The representative, who has been in office since 2017, showed a number of transactions in the past month, including the sale of several bank shares, in a new filing dated April 20.

Here’s a look at the bank stocks that were informed of In an April 20 filing, along with the date of their sale.

  • Ameris Bancorp abcb: $1,000 to $15,000, March 14
  • Fidelity National Information financial institutions$15,001 to $50,000, March 16
  • Morgan Stanley M / s: $1,000 to $15,000, March 6
  • Charles Schwab Corporation schw: $1,000 to $15,000, March 6
  • Charles Schwab Corporation: $1,000 to $15,000, March 14
  • Seacoast Banking Corporation of Florida SBCF: $1,000 to $15,000, March 29
  • SVB Financial Corporation: $1,000 to $15,000, March 9

transactions were informed of By QuiverQuant, who also shared in a tweet that sales could be a concern as they were “in the midst of a banking crisis”.

“Gottheimer sits on the House Financial Services Committee,” QuiverQuant flagged the tweet.

The sale by SVB Financial, owner of the Silicon Valley bank, happened a day before the bank’s takeover by the FDIC and the stock will be delisted later.

After selling the bank’s shares, Gottheimer would issue a series of tweets about banking regulations.

“This week, I questioned federal banking regulators over their failure to properly oversee Silicon Valley Bank. We are working to get to the bottom of what happened and why the regulators did not use the tools they had were already there to help stop the collapse,” Congressman Tweeted In one of his ex stock positions on March 30.

On April 14, Gottheimer said he would soon be calling for an investigation into the failure to prevent the collapse of several banks.

“We need to know why the Federal Reserve, FDIC, and state regulators didn’t use tolls to prevent the collapse of Silicon Valley Bank,” Gottheimer said. Tweeted On 14 April.

During a hearing by the House Financial Services Committee, Gottheimer questioned Witnessed the walk on a Silicon Valley bank and the eventual collapse of the bank.

Related Link: There’s an ETTF for the Master Trader Who Wants to Mimic Nancy Pelosi’s Investing, Here Are the Holdings

Why this is important: The Congressman lost money on his trading position due to the prospect of the collapse of Silicon Valley Bank.

Data from Quiver Quant shows the congressman bought SVB Financial stock on July 15, 2022, when shares were trading between $396.04 and $412.33.

The sale took place on March 9 when shares were trading between $106.04 and $177.75. The day before the transaction by Gottheimer, shares traded between $264 and $271. Shares of the bank stock were above $300 in February 2023.

Shares would close on March 10 when it was announced that the FDIC had taken over the bank. The shares would later be delisted and the bank now trades on the OTC for less than $1 per share.

By selling when he did, Gottheimer lost money, but also protected himself from losing more, which could play into the question of whether he had any alleged insider information as a member of the House Financial Services Committee.

While some other bank stocks sold by the congressman have jumped, Charles Schwab’s shares have declined since the day of the sale.

Gottheimer sold the stock on March 6 when shares traded between $75.94 and $77.32 and on March 14 when shares traded between $55 and $61.11. At the time of writing, shares of Charles Schwab were trading at $54.

Uncommon Whales listed a 140% gain on holding shares of ChemoCentryx before it was acquired by Amgen as the biggest gainer among stock positions from members of Congress in 2022, a position held by Gottheimer.

The Congressman has been one of the most active businessmen among members of Congress, with a informed of Made 134 trades in the first quarter of 2021, something he was told during a television interview.

“This Is News to Me,” Gottheimer Said during the interview.

UnusualWhales flagged an unusual option purchase by Gottheimer in 2022, when Congress bought options in Microsoft Corporation before signing the CHIPS Act. It was noted that the Congressman had worked at Microsoft prior to his time in office.

The news of Gottheimer selling bank stock comes after a recent filing repealed. John Curtis (R-UT) who sold shares of First Republic Bank and Bank of America in March.

Transactions like Gottheimer’s could increase calls to ban members of Congress from doing business while in office.

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Photo: shutterstock