Greg Becker has stepped down as SVB Financial's CEO — 6 weeks after his bank collapsed
Both Becker and CFO Daniel Beck resigned this week due to the recent bankruptcy filing of Silicon Valley Bank's ex-parent, SVB Financial.
Greg Becker, the CEO of SVB Financial Group, has resigned a little over a month after declaring bankruptcy for his company and six weeks after Silicon Valley Bank had been seized by regulators.
SVB Financial announced Friday that Becker had formally resigned from his position as director and CEO of the company on Wednesday. According to the filing, he will continue to consult with the company "as required". SVB Financial will not pay him for these services.
According to the filing, the former CEO resigned one day after Daniel Beck had resigned from his position as chief financial officer.
Nicholas Grossi was named interim CFO by SVB Financial in Beck's stead on Thursday. Grossi is a director of the North American restructuring division at consulting firm Alvarez & Marsal.
SVB Financial announced that it had hired A&M last month to help restructure its business after regulators declared the bank, its primary business, insolvent. The bank was then taken over by the regulators. William Kosturos was appointed as SVB Financial's chief restructuring officer. He took over from Becker, who had been the managing director of A&M. SVB Financial declared bankruptcy a few days later.
Becker left for his Hawaiian vacation days before the filing of bankruptcy. In spite of Kosturos being appointed and Becker's departure, the bankruptcy filing made it clear that Becker was still its CEO - even though he wasn't paid by SVB Financial.
SVB Financial stated that it had to resolve this issue after filing for bankruptcy. Prior to Silicon Valley Bank being seized, Becker was on the official payroll of the failed institution, as were all SVB Financial's officers and employees. SVB Financial stated in its Friday filing that after Silicon Valley Bank was seized, all SVB Financial staff except Becker, became employees of Silicon Valley Bridge Bank N.A. The filing did not make it clear for whom Becker or Beck had officially worked since Silicon Valley Bank failed.
After two failed auctions held by the Federal Deposit Insurance Corp. in late last month, First Citizens BancShares Inc. purchased Silicon Valley Bank.
SVB Financial announced that it will postpone the annual shareholder meeting scheduled for Thursday.