Part 7/13:
Recent insider trading activity further fuels skepticism. Senior executives, including the CEO, sold millions of dollars worth of stock shortly before the bank's collapse. The CEO’s sale, conducted under a pre-established trading plan, raises questions about whether internal knowledge of the crisis influenced their decisions. While such plans are legal if properly disclosed, the timing is questionable and warrants further investigation.
Adding to the tumult, the bank failed to have a Chief Risk Officer for eight months amid worsening market conditions, which is alarming for a financial institution. Critical risk assessments during this period could have mitigated or at least forewarned of impending failure, but their absence arguably exacerbated the bank’s vulnerability.