SVB’s Loans to Insiders Tripled to $219 Million Before It Failed
- Loans to officers, directors the highest in two decades
- The bank’s weaknesses came to light as the loans surged
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As Silicon Valley Bank deteriorated late last year and regulators began internally flagging flaws in its risk management, the lender opened up the credit spigot to one group: insiders.
Loans to officers, directors and principal shareholders, and their related interests, more than tripled from the third quarter last year to $219 million in the final three months of 2022, according to government data.