Biden shows his wish to force Diversity, Inclusion, and Equity on America
Biden defends stability of US banking system after Silicon Valley Bank’s stunning collapse
The New York Post at least outlines Biden’s words as he gaslit us all by his claim to secure our nation’s banks without having to perform another taxpayer-funded bailout.
President Biden defended the stability of the US banking system on Monday morning after the stunning collapse of Silicon Valley Bank sparked fears of a major economic crisis.
“Thanks to the quick action of my administration over the last few days, Americans can have confidence that the banking system is safe,” Biden said. “Your deposits will be there when you need them.”
The president sought to reassure worried Americans and small business owners even as regional bank stocks led by First Republic Bank plunged in premarket trading Monday due to fears that SVB’s meltdown would prompt a nationwide flurry of withdrawals.
Biden also blasted executives at SVB and other failing banks, declaring that those whose actions prompted the current crisis “will be fired.”
“If the bank is taken over by FDIC, the people running the bank should not work there anymore,” Biden said.
The feds will get a “full accounting of what happened and why,” Biden added.
“Those responsible can be held accountable. In my administration, no one is above the law,” he said.
While the holdings of impacted depositors will have their money guaranteed, Biden noted that “investors in the banks will not be protected” because they “knowingly took a risk” by pouring cash into SVB.
Biden also took aim at former President Donald Trump, arguing his administration rolled back regulations that could have helped to prevent the current crisis.
He pledged an overhaul that will “make it less likely this kind of bank failure would happen again and to protect American jobs and small businesses.”
(Read more from the New York Post)
When these banking wokesters invest in pie-in-the-sky ESG projects and the money gets spent before the company and then bank fails, the money goes somewhere
So since the money will have been spent by the time that the next bank fails (three since Silicon Valley Bank started the trend), where will Biden pull the money? He claims he will get it from FDIC dues. Who pays those dues? Is it anyone with a bank account or the taxpayer?
I smell gaslighting.
Other Americans face a limit of $250,000 on their deposits. Why did the Silicon Valley Bank and Signature Bank merit additional monies (possibly into the millions for some, like Roku)? Was it that thousands of green-oriented companies depended on Silicon Valley Bank and Signature Bank? Was it that Silicon Valley Bank seemed more focused on Diversity, Inclusion, and Equity than profits?
It’s not just the food on your plate being threatened
Silicon Valley Bank collapse threatens climate start-ups
The New York Times has been so gracious to point out the green largesse made available through the Silicon Valley Bank. (Bolding is mine for emphasis.)
As the fallout of the collapse of Silicon Valley Bank continued to spread over the weekend, it became clear that some of the worst casualties were companies developing solutions for the climate crisis.
The bank, the largest to fail since 2008, worked with more than 1,550 technology firms that are creating solar, hydrogen and battery storage projects. According to its website, the bank issued them billions in loans.
“Silicon Valley Bank was in many ways a climate bank,” said Kiran Bhatraju, chief executive of Arcadia, the largest community solar manager in the country. “When you have the majority of the market banking through one institution, there’s going to be a lot of collateral damage.”
Community solar projects appear to be especially hard hit. Silicon Valley Bank said that it led or participated in 62 percent of financing deals for community solar projects, which are smaller-scale solar projects that often serve lower-income residential areas.
(Read more at the New York Times)
SVB hired board obsessed with diversity, invested $5BN for “healthier planet,” and held month-long Pride celebration, but had NO chief risk officer for eight months last year
The Daily Mail provides a wide-angle view of the wokeness within Silicon Valley Bank, along with an overview of its recklessness. (Bolding is mine for emphasis.)
Executives at Silicon Valley Bank focused on woke initiatives to increase diversity amongst its ranks and invest in startups promoting a ‘healthier planet,’ but failed to spot its glaring problems with investments as interest rates rose.
The now-failed bank had an A rating for its Environmental, Social and Governance policies according to the MSCI index after creating its own initiatives to ‘advance inclusion and opportunity in the innovation economy’ and investing in clean energy solutions over the past few years.
It even announced that it would invest a whopping $5billion by 2027 to support sustainability efforts, while its European offices held a monthlong Pride celebration and promoted ‘safe spaces.’
But for eight months last year, the bank did not have a chief risk operator, as it invested clients’ money in low-interest government bonds and securities.
Then when the Federal Reserve increased interest rates, the value of SVB’s assets fell while customers tried to withdraw their money.
Now, many are slamming the financial institution for focusing too much on woke policies and not enough on its investments.
Silicon Valley Bank has long touted its diversity, equity and inclusion efforts as it built its banking franchise around startups.
It said in its 2022 ESG Report that the bank strives to ‘create a more just, equitable and sustainable world.’
Among the initiatives included in that report are a ‘commitment to provide at least $5billion by 2027 in loans, investments and other financing to support clients’ sustainability business.
‘SVB’s Sustainable Finance Commitment aims to support companies that are working to decarbonize the energy and infrastructure industries and hasten the transition to a sustainable, low-carbon, net zero emissions economy,’ the report states.
It also notes that the bank implemented ‘a diverse candidate slate for US leadership roles’ and introduced its first six Employee Resource Groups for Asian, black, Hispanic, LGBTQ, veteran, military and female employees.
(Read more at the Daily Mail)
Well, woke Democrats flock together and don’t allow one another to go under, do they, Biden?
It looks like the one reason for saving this bank is the same reason Obama “saved” Solyndra with tons of taxpayer cash.
Green job money laundering that turn into cash donations to Democrats. A good Democrat cannot stop that.
Of course, the previous two articles highlight the previous wokeness of this Democrat bank; however, …
Although the previous two articles accentuate the woke nature of SVB, we cannot forget how this hurts the Democrat cause. It stops Democrat funding. It interrupts monies flowing to climate-related projects, race-related projects, trans-centered initiatives, and more.
Let’s not forget Signature Bank, friend of crypto and their board member Barney Frank
Yes, don’t forget that Signature Bank closed the Trump account when it was offended by his actions
The New York Post reminds us that Signature Bank has Barney Frank (former Representative in the U.S. House and half of the genesis of the Dodd-Frank Act that over-regulated banking) as a board member.
Barney Frank — the retired congressman who co-authored the Dodd-Frank Act to tighten bank regulations after the 2008 financial crisis — is under fire over his role in the latest US banking disaster.
The 82-year-old Democrat is on the board of directors at Signature Bank — a New York lender that was shut down by state regulators over the weekend, becoming the industry’s third major casualty since Silicon Valley Bank was abruptly shuttered on Friday and the crypto-focused Silvergate Capital shut down a week earlier.
In an interview with Bloomberg late Sunday, Frank partly blamed cryptocurrencies, which hadn’t existed when he and fellow lawmakers in Washington were grappling with the collapse of Lehman Brothers in 2008.
“Digital currency was the new element entered into our system,” Frank told Bloomberg. “A new and destabilizing — potentially destabilizing — element is inatroduced into the financial system. What we get are three failures.”
Frank didn’t address the fact that crypto had become a key growth vehicle for Signature Bank under the direction of himself and others — despite widespread concerns about the risks of the notoriously volatile sector.
(Read more at the New York Post)
If you go beyond reading the words of Mr. Frank and read the context, you’ll see this bank is a grow-rich land for Democrats
It may involve crypto. It may involve high tech or green technology. Any which way, it will involve money to Democrats.
Signature Bank de-banked Trump after Jan 6—now the regulators have shut them down
The Post Millennial reminds us that it was Signature Bank who closed Trump account after they were offended by the 6 January events.
Regulators shut down New York City based Signature Bank on Sunday, a financial institution which had previously cut ties with President Donald Trump following the riot at the US Capitol on January 6, 2021.
Signature Bank is the second financial institution shuttered by the Federal Deposit Insurance Corporation (FDIC) this week after Friday’s collapse of Silicon Valley Bank. According to CNBC, “Signature is one of the main banks to the cryptocurrency industry. As of Dec. 31, Signature had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.”
On January 12, 2021, the bank told The New York Post that it had begun the process of closing Trump’s two personal accounts and “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”
According to the outlet, Signature also posted a “scathing statement” on its website slamming Trump stating, “We have never before commented on any political matter and hope to never do so again.”
The statement continued, “We witnessed the President of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty. At this point in time, to ensure the peaceful transition of power, we believe the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people.”
(Read more at the Post Millennial)
So it looks like being woke was more important than a lucrative account
Whether this won brownie points with the Germans cannot be measured through this article; however, it seems the monies associated with the Trump organization was not enough to motivate this bank into sane practices.
One for all the Democrats who believe Biden’s fairy tales on SVB and the rest
Biden’s Bank bailout Whoppers
The Wall Street Journal examines the major lie that Biden told about the bailout of Democrat money-laundering banks. (Bolding is mine for emphasis.)
President Biden tried to reassure Americans early Monday morning that the banking system is safe and not to worry about the failures of Silicon Valley (SVB) and Signature banks. Markets didn’t believe him because bank stocks took another plunge, with some down 60% or more.
Perhaps investors don’t believe the Administration’s Sunday interventions solve the problems. The Federal Deposit Insurance Corp. says it couldn’t find a private buyer for SVB, though a source tells us Treasury and the Federal Reserve favored one. FDIC Chairman Martin Gruenberg nixed it owing to hostility to bank mergers.
Instead the regulators offered solutions that bail out even uninsured bank depositors and other banks at unknown costs that Mr. Biden isn’t acknowledging. Take Mr. Biden’s pledge that “no losses will be borne by the taxpayers.” He said “the money will come from the fees that banks pay into the Deposit Insurance Fund.”
That’s not nearly the full story. The FDIC’s Deposit Insurance Fund normally guarantees up to $250,000 in deposits, which protects small retail customers including mom-and-pop businesses. Banks pay for this guarantee with insurance premiums, but the insurance fund isn’t intended to backstop deposits of bigger customers with more capacity to weather losses if a bank goes under.
Yet after venture capitalists (Democratic donors) and Silicon Valley politicians howled, the FDIC on Sunday announced it would cover uninsured deposits at SVB and Signature Bank under its “systemic risk” exception. Apparently, Silicon Valley investors and startups are too big to lose money when they take risks. They benefited enormously from the Fed’s pandemic liquidity hose, which caused SVB’s deposits to double between 2020 and 2021. SVB paid interest of up to 5.28% on large deposits, which it used to fund loans to startups.
(Read more at the Wall Street Journal)
For the idiot Democrats who don’t live on the coasts, but continue to vote for this idiot
Deposit insurance encourages bank failures like SVB
The Wall Street Journal explains how making a built-in escape hatch makes one less committed to taking the mission to completion. (Bolding is mine for emphasis.)
Silicon Valley Bank’s failure makes many Americans grateful for deposit insurance, which protects accounts holding $250,000 or less. But the SVB episode also illustrates the dangers of deposit insurance. A banking system dominated by government insurance, plus too-big-to-fail protection that effectively insures all deposits at the largest banks, lacks essential market discipline, is systemically unsafe, is more likely to see episodes like SVB’s failure, and is more costly to taxpayers and bank customers.
Historically, unprotected well-informed depositors, especially other banks, gauged and responded to each bank’s risk, creating an incentive for banks to manage risk responsibly. Uninformed depositors—like those now at risk at SVB — were free riders on informed discipline. Now, informed depositors can easily get around the $250,000 limit on insurance, which eliminates their incentive to monitor banks. The recent disappearance of the interbank loan market means that banks don’t monitor each other to gauge creditworthiness as short-term borrowers of reserves either. That leaves only bank regulators to mind the store, and they often lack incentives and knowledge to measure and punish risk on a speedy basis. That’s how predictable messes like SVB happen.
Deposit insurance was absent from nearly all other countries’ banking systems before 1980, and from the U.S. (with some temporary exceptions) until 1933. It was adopted for political reasons, and it hasn’t been a stabilizing influence. Virtually every academic study of deposit insurance shows that it promotes, rather than reduces, banking system fragility, with major costs borne by the insurers — which means ultimately by insured depositors and potentially taxpayers. The popularity of deposit insurance reflects public ignorance about its costs and about how a disciplined, uninsured banking system could operate as an alternative.
This episode points to a continuing failure of regulatory discipline, which lacks the incentives and smarts of the market, to substitute for market discipline. It also points to the need for business managers to learn more about banking, and for the Fed to learn that its own monetary-policy mismanagement for many years has lots of consequences for reducing financial stability. Those consequences include the insidious elimination of interbank discipline by ending the last vestige of informed discipline on imprudent risk management by banks.
Again, for Democrats not on the coasts who don’t benefit from Biden’s largesse
Regional banks are seeing flight of deposits to too-big-to-fail megabanks
Market Watch points out how local banks are now seeing depositors leave for larger banks that might be classified as “too big to fail.”
The unexpected demise of Signature Bank over the weekend, along with the failure of Silicon Valley Bank on Friday, ignited a shoot-first-ask-questions-later reaction among regional-bank investors as customers moved deposits to the largest U.S. banks for perceived safekeeping, observers said Monday.
Stocks of regional banks such as First Republic Bank (FRC), Western Alliance Bancorp (WAL), PacWest Bancorp (PACW) and Zions Bancorp (ZION) dropped Monday even after U.S. bank regulators set up a new emergency-loan program as a backstop for deposits.
(Read more at Market Watch)
Finally, to name Democrat beneficiary names
Here’s who benefited from their executive, PAC donations
Fox Business lays out a little of those who benefitted from the SVB largesse.
Silicon Valley Bank, the nation’s 16th-largest bank, failed Friday after depositors hurried to withdraw money amid anxiety over the bank’s health. It was the second-biggest bank failure in United States history after the collapse of Washington Mutual in 2008.
The bank’s California executives and political action committee have propped up a handful of politicians in recent elections, which has primarily benefited Democrat lawmakers.
Greg Becker, the bank’s president and chief executive officer, cut two maximum checks totaling $5,800 to the campaigns of New York Senate Majority Leader Chuck Schumer and Virginia Sen. Mark Warner during the 2022 midterm election cycle. The two Democrat senators are the only politicians Becker financially backed directly during the most recent cycle.
Becker also gave $2,500 to the New Democrat Coalition Action Fund in May last year. The New Democrat Coalition Action Fund sent $1 million in contributions to numerous Democrat politicians during the 2022 elections.
Becker’s most recent donations came on the heels of $5,600 he donated between President Biden’s 2020 campaign and victory fund.
Jeffrey Leerink, the chief executive officer of SVB Securities, donated $1,250 to Massachusetts Democrat Rep. Jake Auchincloss during the 2022 and 2020 elections.
Meanwhile, Silicon Valley Bank’s chief credit officer, Marc Cadieux, poured $250 into Biden’s campaign during the 2020 elections.
The bank’s political action committee has received around $40,000 from its employees over the past two election cycles. In turn, it contributed thousands to Warner, New York Democrat Rep. Gregory Meeks and North Carolina Republican Rep. Patrick McHenry during the 2022 elections.
(Read more Democrats, Democrats, and more Democrats at Fox Business)
What did you expect when the bank was all Diversity, Inclusion, and Equity?
Did you expect a better job than Mayor Pete has provided to the Department of Transportation?
Still, let me try to get this straight. Biden says that he will use the bank assets to pay off the multi-billion dollar debt
Biden says that the tax payers will not be on the hook for this bailout. I am sure that includes tax payers not having to pay seven times the rate current during Trump years for eggs, milk, meat, and other necessities. Surely Dementia Joe would not just print millions of dollars and hand it over to his Democrat friends, causing even greater inflation.
Still, let’s go through the numbers:
|Joe’s claims||Reality||Monies available|
|Assets would be sold||SVB was encouraged to buy T-bills at $1K (which mature in 5 years) and forced to sell at $750 immediately||This does not present a newly available cash stream.|
|SVB was invested in 10-year mortgage-backed securities that had to be sold at a loss (no sources divulged how much of a loss)||This does not present a newly available cash stream.|
|SVB was invested in green projects. We know how well Solyndra did.||This does not present a newly available cash stream.|
So please tell me how America does not eat this loss.
One final point: Beside selling stock in the bank just before the collapse — this is what the bank management did
Silicon Valley Bank gave company-wide bonuses hours before it collapsed
Fox Buisness reported in a 12 March 2023 article that SVB issued company-wide bonuses before the collapse.
Silicon Valley Bank employees received their annual bonuses on Friday just hours before the government took control of the company, according to reports.
SVB traditionally processes annual bonuses on the second Friday of March, unnamed sources associated with the bank told CNBC. The bonuses were reportedly for work completed in 2022.
SVB did not immediately respond to a request for comment from Fox News Digital.
The Santa Clara, California-based band collapsed last week and is now under the control of federal regulators. SVB had been the 16th-largest bank in the U.S. prior to the bank run that led to its downfall.
(Read more at Fox Buisness)
As mentioned at Bunkerville, this came after the bank leadership rewarded itself
Bunkerville pointed out in a 15 March post that the SVB leadership rewarded itself before the collapse by selling large chunks of bank stock.
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