You're Buying, They're Selling: Big Bank Execs Dump $100 Million In Stock As Market Soared

Tyler Durden's picture

Shortly after the melt-up in US bank stocks began following Trump's election victory, we noted heavy insider-selling (and options expiration) among Goldman Sachs executives. Well the selling never stopped, as WSJ reports executives at the biggest Wall Street banks have sold nearly $100 million worth of stock since the presidential election, more than in that same period in any year over the past decade.

As we detailed in mid-November, while the mainstream media proclaims the surge in bank stocks as heralding a new dawn in everything-is-awesome-ness for America, we note that insiders at Goldman Sachs sold $205 million of stock since Nov. 8, company filings show.

That’s three times more than the group has sold in any month for at least five years, data compiled by Bloomberg show.

Not a bad week for Cohn, Blankfein, and Viniar...


And since then, as the bank's stock prices have soared, despite lackluster earnings expectations and a yield curve that did not steepen (pumping up NIM)...


The Wall Street Journal reports, bankers sold nearly $100 million worth of stock since the presidential election, more than in that same period in any year over the past decade...

The share sales occurred as financial stocks soared since Nov. 9 on expectations of lighter regulation, lower taxes and pro-growth economic policies. The KBW Nasdaq Bank index is up nearly 20% since Donald Trump’s victory, about triple the gains notched by the broader market.


In addition to the share sales, bank executives have sold another $350 million worth of stock to cover the cost of exercising options, filings show. That is twice the amount sold for that purpose at big banks in the year leading up to the election.


An added bonus: The post-election run-up in share prices gave value to some options that were likely to expire worthless. At Goldman Sachs Group Inc., for instance, the postelection bounce turned half a billion dollars worth of stock options into winners—some just days before they were set to expire.

They are all doing it...

Further selling may be in store, and not all big banks have filed reports on selling by all their top executives.

What’s more, bank employees typically can’t sell shares or exercise options in the run-up to earnings reports. The big banks finished posting their latest round of earnings last week, meaning employees will now in most cases be free to sell.


Those sales won’t be as apparent, though. Banks only have to disclose trades for a handful of top executives, although some rank-and-file employees are paid largely in stock and options.

So who is the sucker at this table?

Dick Bove gets it... "banks won't be able to hold on to the earnings boost they get from higher interest rates. The hole in the bottom of the piggy bank, as he described it, would be that higher rates would also hurt the value of financial assets held by the bank, thus leaking out any benefits from increasing borrowing costs."

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NugginFuts's picture

Correction: I'm not buying their horseshit stocks.

Yukon Cornholius's picture

But rest assured (((they))) will be taking your money regardless.

Nekoti's picture

Same here, if it doesn't glint in the sun, it's not for me.

Osmium's picture

They sold 100 million of stawks.  What was Bernanke conjuring out of thin air and funneling into the “markets”?  85 BILLION per month.  Kinda pales in comparison don’t ya think?

SirBarksAlot's picture

True, but didn't that all go to the derivative bubble payments?

The Saint's picture
The Saint (not verified) SirBarksAlot Jan 24, 2017 2:32 PM

What's going on with the company stock buy-back programs?  Haven't seen anything at ZH about that since Nov. 8th.


shizzledizzle's picture

Must be nice...

a. Have the FED/Central Banks buy your shit up and you take profit.
b. Wait for the next calamity and talk about how "BAD" things are and how you will take everyone with you in the flames if they let you fail.
c. Get interest free money from fed to buy the stocks you sold them back at bargain basement prices.
d. Rinse and repeat. 

TeethVillage88s's picture

Hell of a RICO Operation... maybe marginally better than the Clinton Foundation Charity.

- Did you notice TBTF Banks didn't like Trump before election
- Now they show how they can lie to anyone's face saying oh the economy is going to be great under President Trump!
- Just like Ben Bernanke saying "no sign of recession" in 2008
- So the Crash is on it's way
- Maybe they will roll out the false flag that Russia attacked us, our banks, our govt, our military

jamesmmu's picture

Cheap debt that fueled U.S. property boom is set to mature – more delinquencies expected; How far will the damage spread?

TeethVillage88s's picture

We were waiting on HE-LOCs a while back.

Home Equity Line of Credit maturation.

Anyone have the 411?

Hohum's picture

It's the inverse of when Potter was buying everything up in Bedford Falls on the cheap.

Atomizer's picture

Lol. Good analogy. We will be the kings of real estate again. No ATM housing again. High crime for copper theft and squatting in homes. 

TeethVillage88s's picture

Timely information. Thanks Zerohedge.

"...more than in that same period in any year over the past decade."

That is why I come here.

Did you see the X22Report Video on Youtube about the S&P SKEW signaling an outlier event? (18 hours old)(Check last 6 minutes into it)

adr's picture

Ha, "investors" buying.

The owners of the Fed were using printed money to buy their own stocks so the reptilian overlords like Blankfein, Dimon, etc could pad their bank accounts even more.

If Trump really had balls he'd make central bank buying of stocks illegal, either directly or through subsidiaries.

Of course that would tank the market immediately.

Atomizer's picture

Today is his second day in a full week of office. Your 8 year faggot distroyed our country. Give Trump 100 days. Thank you. 

Seasmoke's picture

And yet, Still at all time highs. Makes no fucking sense. Only Mr. Yellen is buying. Basically stealing money is all they are doing. End the Fed Donald J. !!

edifice's picture

Well, it's kind of like during the housing bubble, when lower tranches of MBS were failing, the price of the security stayed the same or kept rising, for a while. Eventually, the market caught up. Same thing will happen here.

GoldenDonuts's picture

You have not seen this before?    Of course it makes sense.  Regular people are finally buying stock so it is finally nearly time to unplug the compters and let the market find its real price.  Escalator up and an elevator with a broken cable down.

Theos's picture

How is this surprising? That's the point of getting stock options - To sell them when the price goes up and diversify into other things.

cwsuisse's picture

All the junk shares are presumably gobbled up by the central banks. 

0valueleft's picture

Theres a Zucker born every minute. I know it used to be Sucker. But maybe this way the snowflake decorated cupcakes might catch on.

blargg's picture

So Zucker like those odd pronouns (zie, zir, etc.) and also a reference to Zuckerberg?

pebblewriter's picture

Thanks for writing about this, Tylers. 

People forget that Goldman is the largest Dow component, and that its recent breakout helped the DJIA also break out past very stiff resistance.  IMO, it was no coincidence that the breakout occurred just prior to option exercise date.

J bones's picture

I agree with Dick Bove! The very end of video when he got cut off was the key. If lending volumes drop then the banks have less cash to play with to make money. Rates and dont matter if there isnt a figure to associate a rate with.

withnmeans's picture

This is old news, as I have been saying for months. If you did not see this, I do NOT feel sorry for you!

They have been buying it up since the financial colapse, then praying the Mom and Pop's will buy it at the top so they can collect their returns. Works everytime!!!


FrenchTrader's picture

looks like insiders missed quite a bit of the rally... selling too early, the retail syndrom ?
that's disappointing...
and why none of these insiders bought before the big rally ?

angry_dad's picture
angry_dad (not verified) Jan 24, 2017 6:43 PM

How do you know they are actually selling???

The banksters have been spoofing the markets for years with phony HFT sell orders only to cancel the sale in a few miliseconds to drop prices down.

No doubt the stuff they are actually selling has tremendous profits after acquiring these equites at fire sale prices with gov't guarantees, insider information, legalized price fraud,  and colossal dividends.

Nothing to see here , move along.

angry_dad's picture
angry_dad (not verified) Jan 24, 2017 6:44 PM

How many dunces out there have never heard?;


it's what banks do.

wow017's picture

My question is where did they stash the money?  Did anyone bother to follow the stink?

There's picture

2008 3/4 $Trillion bail out of Wall street and the big banks brought to us by The Republicans and Goldman Sachs executives. America bailed out wall Street not Main Street.

2017 Wall Street and the big banks will be bailed out again lrsd by thr Republics and and Goldman Execs.

Who believes the Billionaire class cares about the American little guy?