Many companies are paying heavy prices for going woke and Silicon Valley Bank is just one of many. With many more to come.
Banks are supposed to be all about making money in order to please the stockholders. When they are not and choose to invest in woke policies, they are bound to fail.
Let’s face it, there are many more of us than there are of them. Even a company as large as Disney has taken some powerful licks as their woke movies have bombed at the box office.
Failed Silicon Valley Bank (SVB) has been hit with accusations that it was focusing way too much on diversity, equity, and inclusion (DEI) initiatives and generally managed poorly.
SVB was a top 20 bank and on Wall Street today, they stopped trading on a large number of banks as well as Charles Schwab. The California Department of Financial Protection and Innovation closed it on Friday and named the Federal Deposit Insurance Corporation (FDIC) as the receiver.
Florida Republican Gov. Ron DeSantis told Fox News on Sunday:
VISIT OUR YOUTUBE CHANNEL“This bank, they’re so concerned with DEI and politics and all kinds of stuff, I think that really diverted from them focusing on their core mission.”
The Biden administration says they will cover all losses, which I am sure is not because so many Chinese tech companies were in line to take a bath. Uncle Joe is bailing them out using your tax dollars to do it. I wonder if we can claim China as a dependent on next year’s tax forms. SVB reportedly failed to have someone in charge of risk assessment for some eight months. The problem with the so-called equity is that sometimes you have to hire people who are not up to the task assigned to them, just because they are the right color or sex identity.
The bank has pages on its website dedicated to showing off its DEI initiatives and “workforce diversity.”
“An inclusive workplace expands opportunities for everyone,” the site reads, captioning the charts below. “SVB benefits from a diverse workforce and we aim to continue to increase diverse representation at all levels of the company.”
Jay Ersapah, Chief Risk Officer for the SVB in Europe, Africa and the Middle East, describes herself as a “queer person of color from a working-class background” and organized LGBTQ initiatives, including a month-long Pride campaign, the Daily Mail report outlined. Ersapah also implemented so-called safe space catch-ups for staffers and boasted of serving “underrepresented entrepreneurs.”
SVB announced Wednesday it was being forced to sell a large amount of securities at a loss, which raised concerns among venture capital firms and startups about the safety of its assets. Depositors rushed to withdraw money, sparking a run on the bank.
Some have blamed the bank’s collapse on the Federal Reserve’s interest rate hikes. The Wall Street Journal noted that the rate hikes had caused the value of existing bonds with lower payouts to fall in value, translating to giant unrealized losses for some banks. Others say the rising interest rates are no excuse, and the bank had plenty of time to prepare.
President Joe Biden and other Democrats have blamed former President Donald Trump for signing a bipartisan bill that lifted some banking regulations.
Of course, they blame Trump just like they blamed him for the withdrawal from Afghanistan, inflation, the refrigerator bulb burning out, and the heartbreak of psoriasis.
