Top Executives at First Republic Bank Sold Millions of Dollars in Company Stock Before Shares Plummeted – And No SEC Filing!

Top Executives at First Republic Bank sold $12 million in company stock before shares plummeted, according to the Wall Street Journal.

The stock sale does not show up in SEC filings.

The executives filed insider forms with the FDIC thanks to a loophole in the Securities Act of 1933, the Wall Street Journal reported.

First Republic Bank was downgraded to “junk” by the S&P on Wednesday.

“We believe the risk of deposit outflows is elevated at First Republic Bank despite the actions of federal banking regulators and the bank actively increasing its borrowing availability to mitigate risk associated with the bank failures over the last week,” S&P said in a statement.

“Still, if deposit outflows continue, we expect First Republic would need to rely on its more costly wholesale borrowings. This would encumber its balance sheet and hurt its modest profitability,” said S&P, according to Market Watch.

As of December 31, First Republic Bank had $176.4 billion in deposits – 68% of which are above the $250,000 FDIC insurance limit, according to Market Watch.

Customers were lined up at a First Republic Bank in Los Angeles on Saturday to withdraw their money after Silicon Valley Bank failed.

WATCH:

First Republic’s stock tumbled on Wednesday after a massive bank sell off this week.

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Cristina began writing for The Gateway Pundit in 2016 and she is now the Associate Editor.

You can email Cristina Laila here, and read more of Cristina Laila's articles here.

 

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