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| Government Corruption |
| Greenfield: SVB Went Woke, Then Broke, Then Got a Bailout |
| 2023-03-19 |
| [FrontPage] Americans can’t afford food, but leftist and Chinese companies get bailed out. by Daniel Greenfield Silicon Valley Bank spent billions on green energy, millions on Black Lives Matter and other leftist causes, until it finally ran out of ‘other people’s money’. That’s when the Biden administration decided to bail out its depositors. At a dinner hosted by Peter Orszag, Obama’s former budget director, Wally Adeyemo, Obama’s Nigerian assistant treasury secretary and Biden’s deputy treasury secretary, chatted with Blair Effron, an influential Biden donor, serving on Biden’s Intelligence Advisory Board, who had been hired as an advisor by SVB to deal with its financial crisis. The outcome was inevitable. “Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them,” Biden lied. The deposits of ordinary Americans were already protected up to $250,000. But unlike banks that serve ordinary customers, the vast majority of SVB’s clients held over $250,000 and were not protected by FDIC insurance. Rather than risk its political donors and allies having to take a 10% loss on their funds, the Biden administration illegally bailed them out while unilaterally transforming FDIC insurance into a protection plan for its political allies. The Biden bailout was not there to protect Americans, but leftist and even Chinese interests. SVB was the embodiment of Environmental, Social, and Governance or ESG investing which prioritizes leftist politics over profitability. The Biden administration recently announced that it would allow 401(k) pension plans to be put into ESG instead of reliable investments potentially endangering the retirements of tens of millions of Americans which might also get ‘SVB’d.’ While SVB focused on “climate change” and “diversity”, it ignored rising interest rates. The woke bank was too busy with its politics to deal with the math. SVB had no risk officer for 8 crucial months, but its risk officer for Europe, Africa and the Middle East focused on sharing her “experiences as a lesbian of color” and “moderating SVB’s EMEA Pride townhall.” CEO Greg Becker led quarterly diversity, equity and inclusion town halls instead of figuring out that startups squeezed by rising interest rates would need money that the bank didn’t have. Silicon Valley Bank directed over $73 million to Black Lives Matter and other causes. It put millions into, among others, the Accion Opportunity Fund which describes its mission as advancing “racial, gender and economic justice”. It focused on “building a culture of Diversity, Equity and Inclusion” and advancing the “transition to a low-carbon world.” SVB’s mission was to force 100% of its employees to participate in DEI indoctrination. Newsweek named SVB one of “America’s Most Responsible Companies”: not because the woke bank managed its money well, but because it had the right politics. Now one of “America’s Most Responsible Companies” is responsible for economic devastation. SVB mastered wokeness, but failed economics 101. And that was by design. Its real business was politics. By financing leftist causes, SVB had become politically too big to fail. While its own finances are wrecked, the Biden administration quickly stepped in to protect its woke depositors. The SVB bailout was an announcement that the Biden administration would stand behind woke financial institutions and instruments, socializing the pain by spreading it to more stable financial systems, no matter how irresponsibly they put funds at risk in the pursuit of their politics. Read the rest at the link Related: Silicon Valley Bank: 2023-03-18 SVB loaned millions to startups making greenie things no one wanted Silicon Valley Bank: 2023-03-18 Bad Luck: Leprechaun Put All His Pots O' Gold In Silicon Valley Bank Silicon Valley Bank: 2023-03-18 Janet Yellen's Policy Would Destroy Small US Banks While Bailing Out Chinese Depositors, Experts Say |
| Posted by:badanov |