SVB's WOKE investments. Or "How Democrats Robbed a Bank in Silicon Valley

[reason10]

https://spectator.org/democrats-robbed-a-bank-in-silicon-valley/

 

SVB gave over $70 million, according to a Claremont Institute database, to Black Lives Matter and BLM-related causes. Ellie Gardey reports at The American Spectator that California Gov. Gavin Newsom requested in 2021 that “the now-defunct Silicon Valley Bank give [$100,000 to] his wife’s woke ‘gender equity’ foundation, the California Partners Project,” which it did.

Political commitments bizarrely guided investments.

In December, it boasted of $17.5 million in investments in four “Black-, Latinx- and Women-led Community Development Financial Institutions” Last year, SVB sent out a press release titled “Silicon Valley Bank Commits to $5 Billion in Sustainable Finance and Carbon Neutral Operations to Support a Healthier Planet.”

The company featured a “growing” Technology Equity Research Team that pursued quota-ism, paid Paul, Weiss, Rifkind, Wharton & Garrison to conduct an “equity audit, and launched “the SVB Fellows Program, a fellowship program for Black, Latinx and women professionals looking to launch their careers in venture capital.”

The board, and the like-minded people it hired, turned a bank into a charity, a women’s studies department, and a political action committee. One could say they lost focus or that they focused on matters extraneous to banking.

Certainly the company’s failure to hedge its investments after the money supply tightened represents a larger causal factor for its insolvency. But dismissing the non sequitur political spending from a bank misses the point. The very reckless people who would divert $70 million to BLM and pledge $5 billion for “sustainable finance” double as the very reckless people who would scoff at hedging once monetary policy tightened.

Willie Sutton robbed banks because that’s where the money is. A similar rationale motivates Democrats.

Sutton spent decades in jail. After looting the coffers of Silicon Valley Bank, social justice crusaders receive indemnification from the federal government.

Blue staters, find someone with an education to read this and simplify it for you.

 

[West]

Thank you for speaking truth about destructive woke investing

[Aristides]

First Republic Now. What "wokeism" are they guilty of?

[Michael Hardner]

20 minutes ago, Aristides said:

First Republic Now. What "wokeism" are they guilty of?

People on this board blamed Wokism for the 2008 crash too.  They really don't understand how the world works, they see something they don't like then they construct a massive Jenga structure to associate it with current events.

 

You should ignore all of them.

[BeaverFever]

The is why I miss the days when illiterate people simply watched TV and had no political opinions. Now they’re all MAGAs posting nonsense they don’t even understand and aren’t intellectually equipped to scrutinize 
 

1) None of the OP proves “woke investments” (almost all of the items listed are charitable donations or non-financial activity like the fellowship program, not investments.

 

2) Nothing in the OP proves rhat the “woke investments”failed, much less that said investments failed AND also caused the bank to fail. 
 

3) SVB had HUNDREDS OF BILLIONS of assets under management. The desperate examples you scraped together above aren’t even a rounding error on their books let alone enough to cause a bank to fail

 

SVB ALSO DONATED TO MANY REPUBLICANS AND EVEN HIRED MCCARTHY STAFFERS 

Edited March 17, 2023 by BeaverFever

[robosmith]

23 minutes ago, BeaverFever said:

The is why I miss the days when illiterate people simply watched TV. and had no political opinions. Now they’re all MAGAs posting nonsense they don’t even understand and aren’t intellectually equipped to scrutinize 
 

1) None of the OP proves “woke investments” (almost all of the items listed are charitable donations or non-financial activity like the fellow human program, not investments.

 

2) Nothing in the OP proves rhat the “woke investments”failed, much less that said investments failed AND also caused the bank to fail. 
 

3) SVB had HUNDREDS OF BILLIONS of assets under management. The desperate examples you scraped together above aren’t even a rounding error on their books let alone enough to cause a bank to fail

 

SVB ALSO DONATED TO MANY REPUBLICANS AND EVEN HIRED MCCARTHY STAFFERS 

The OP admits SVB charitable donations were NOT the large causal factor of the failure.

Quote

Certainly the company’s failure to hedge its investments after the money supply tightened represents a larger causal factor for its insolvency. But dismissing the non sequitur political spending from a bank misses the point. 

"The point" was easy to miss cause it is BULLSHIT. What a bank does with it's PROFITS, like charitable  donations, is its business and OBVIOUSLY HELPED SVB's business grow.

Of course IF Trump had not eliminated regulations for "small" banks such as SVB, Dodd-Frank would have held their feet to the fire.

[Legato]

 

[Rebound]

The mind-numbingly stupid MAGA people clearly have no clue of what caused the collapse of this bank. Did charitable donations cause a bank wktb $200 billion in assets to fail? No.  
 

The big question: Why did depositors rush to pull out their money? Any bank in the world will collapse if all depositors withdrew all their money at once.  That’s how banking works. SVB couldn’t just liquidate their $200B of investments in a day.  

[BeaverFever]

29 minutes ago, Legato said:

 

^ Those headlines are just more fake example idiocy for people who can’t think critically.  They don’t call it The Daily Fail for mo reason.  That headline is like saying 

”America had NO SECURITY on 9/11 as simpleton President was busy reading kindergarten book “My Pet Goat”

 

 

Edited March 17, 2023 by BeaverFever

[West]

53 minutes ago, Legato said:

 

So the woke say they didn't cause the collapse... how predictable 

[West]

1 hour ago, robosmith said:

The OP admits SVB charitable donations were NOT the large causal factor of the failure.

"The point" was easy to miss cause it is BULLSHIT. What a bank does with it's PROFITS, like charitable  donations, is its business and OBVIOUSLY HELPED SVB's business grow.

Of course IF Trump had not eliminated regulations for "small" banks such as SVB, Dodd-Frank would have held their feet to the fire.

Even if your nonsensical, debunked claim against Donnie were true,  If these folks are "responsible investors" why do they need Donnie to tell them not to be woke slime balls? 

[West]

In my view, even tho it's short term pain, it's a good thing these woke banks are going belly up. If Donnie had anything to do with it, another win for Donnie!

[Legato]

40 minutes ago, BeaverFever said:

^ Those headlines are just more fake example idiocy for people who can’t think critically.  They don’t call it The Daily Fail for mo reason.  That headline is like saying 

”America had NO SECURITY on 9/11 as simpleton President was busy reading kindergarten book “My Pet Goat”

 

 

Ha yes...blame the messenger. Do you have any right hand socks in the sock drawer or did Harper steal them all.

[robosmith]

16 minutes ago, West said:

Even if your nonsensical, debunked claim against Donnie were true, 

You certainly HAVE NOT "debunked" the FACT that Trump signed the bill deregulating Dodd-Frank standards for SVB size banks.

16 minutes ago, West said:

 

If these folks are "responsible investors" why do they need Donnie to tell them not to be woke slime balls? 

You mean making charitable donations to increase good will and THEIR BUSINESS PROSPECTS?

It certainly wasn't "Donnie" who would tell them, it was meeting the standards previously specified in Dodd-Frank.

[West]

20 minutes ago, robosmith said:

You certainly HAVE NOT "debunked" the FACT that Trump signed the bill deregulating Dodd-Frank standards for SVB size banks.

You mean making charitable donations to increase good will and THEIR BUSINESS PROSPECTS?

It certainly wasn't "Donnie" who would tell them, it was meeting the standards previously specified in Dodd-Frank.

1. Yes I have. The co-author of Dodd-Frank had already said Donnies deregulation had NOTHING to do with these banks collapsing. 

2. Are they responsible investors or not?

[reason10]

3 hours ago, Aristides said:

First Republic Now. What "wokeism" are they guilty of?

 

2 hours ago, Michael Hardner said:

People on this board blamed Wokism for the 2008 crash too.  They really don't understand how the world works, they see something they don't like then they construct a massive Jenga structure to associate it with current events.

 

You should ignore all of them.

Dodd/Frank and Obama's ACORN are responsible for the 2008 crash. Those are FACTS, which educated people recognize.

[West]

33 minutes ago, Contrarian said:

Ok good, so you are a man of the market then. 

I am in agreement, the same way in this case, The Markets will sort themself out as Alan Greenspan used to say. 

Bad ideas tend to fail and woke capitalism is a bad idea that SHOULD NOT be propped up by our tax dollars. 

[reason10]

You certainly HAVE NOT "debunked" the FACT that Trump signed the bill deregulating Dodd-Frank standards for SVB size banks.

Dodd/Frank helped cause the crash of 2008, along with Obama's ACORN in the 90s.

SVB failed because of bad investing decisions as well as the WOKE crap this article points out. And it's ALL Unelected Joe's fault, as well as the MOe ronz at the Treasury.
TWO YEARS of a stolen presidency. Only  a downs syndrome child would blame Trump for Biden's actions.

 

[reason10]

Just now, West said:

Bad ideas tend to fail and woke capitalism is a bad idea that SHOULD NOT be propped up by our tax dollars. 

At least not beyond the FICA limits.

[robosmith]

23 minutes ago, West said:

1. Yes I have. The co-author of Dodd-Frank had already said Donnies deregulation had NOTHING to do with these banks collapsing. 

You mean Frank? HE DID NOT SAY THAT.

In any case, Frank is NOT an objective observer cause he voted to rescind those regulations and now he's covering his ass.

23 minutes ago, West said:

2. Are they responsible investors or not?

Becker irresponsibly LOBBIED to have Dodd-Frank regulations, which could have saved his bank, rescinded.

Trump was complicit when he complied.

[robosmith]

26 minutes ago, reason10 said:

 

Dodd/Frank and Obama's ACORN are responsible for the 2008 crash. Those are FACTS, which educated people recognize.

You're LYING. Bush created a housing bubble with low interest rates long after they were needed to boost a flagging economy.

All part of Rove's "permanent Republican majority" plan.

Quote

Rove, then 59, had host­ed this kind of event many times before. Six years earli­er, he’d held weekly breakfasts for high-level G.O.P. operatives to plan for the 2004 fall elections. Back then, as senior adviser to President George W. Bush, Rove oversaw Bush’s re-election campaign. More important, he was attempting to implement a master plan to build a permanent majority through which Republicans would maintain a stranglehold on all three branches of government for the foreseeable future. This was not simply about winning elections. It represented a far more grandiose vision—the forging of a historic re-alignment of America’s political landscape, the transformation of America into effectively a one-party state.

Of COURSE IT CRASHED like all BUBBLES DO.

[West]

46 minutes ago, robosmith said:

You mean Frank? HE DID NOT SAY THAT.

In any case, Frank is NOT an objective observer cause he voted to rescind those regulations and now he's covering his ass.

Becker irresponsibly LOBBIED to have Dodd-Frank regulations, which could have saved his bank, rescinded.

Trump was complicit when he complied.

1. And you believe far left politicians like Elizabeth Warren who's lied about her native heritage and is just engaging in political smears. 

2. Who cares? You HAVE NOT proven this "deregulation" had anything to do with the woke bank going belly up. Go woke, go broke

[West]

41 minutes ago, robosmith said:

You're LYING. Bush created a housing bubble with low interest rates long after they were needed to boost a flagging economy.

All part of Rove's "permanent Republican majority" plan.

Of COURSE IT CRASHED like all BUBBLES DO.

You are not being truthful. In fact it was a Democrat congress that decided to give out risky sub prime mortgages based on people's skin color

[reason10]

59 minutes ago, robosmith said:

You mean Frank? HE DID NOT SAY THAT.

In any case, Frank is NOT an objective observer cause he voted to rescind those regulations and now he's covering his ass.

Becker irresponsibly LOBBIED to have Dodd-Frank regulations, which could have saved his bank, rescinded.

Trump was complicit when he complied.

You are a LIAR. Dodd/Frank caused the 2008 crash. It had to go. It had NOTHING to do with SVB's Woke nosedive.
Trump left Unelected Joe an expanding economy. And Joe DESTROYED it.

[reason10]

54 minutes ago, robosmith said:

You're LYING. Bush created a housing bubble with low interest rates long after they were needed to boost a flagging economy.

All part of Rove's "permanent Republican majority" plan.

Of COURSE IT CRASHED like all BUBBLES DO.

You are a LIAR.

https://www.investors.com/politics/editorials/obama-administration-fueling-another-subprime-mortgage-bubble/

Subprime Scandal: The administration is fueling another housing bubble by pushing lenders to finance homes for people who can't afford them. Pressure is coming from all corners of government. President Obama is worried about a plunge in new-home buying among minority borrowers with subprime credit scores. So he's using the Federal Housing Administration, for starters, to help finance failure.

In a reckless gambit, FHA is asking lenders to relax lending standards, while assuring them it will back home loans down to a 580 FICO score with a minimal down payment and high debt-to-income ratio.

"The obligation that I have is to ensure lenders using the FHA program are lending to as full a spectrum of the credit box as possible," FHA Commissioner Carol Galante recently said.

FHA's chief urging banks to underwrite subprime loans conjures up bad memories of Fannie Mae CEO Franklin Raines begging for more subprime loans before the crisis.

In fact, loans purchased, insured or guaranteed by either Fannie Mae or Freddie Mac, as well as FHA, are automatically designated "qualified mortgages" under new mortgage rules issued by the Consumer Financial Protection Bureau.

The new rule offers some legal protection to lenders pressured to make junk mortgages. Although FHA is the government's new anchor subprime program, Fannie and Freddie are still backing subprime mortgages.

Pressure to ease credit is coming from other federal agencies, including the Justice Department, which has threatened banks with lawsuits if they don't reinvest in minority communities hit hard by subprime foreclosures. It's ordered some lenders to open branches in recessed areas of Detroit and St. Louis and other cities with heavy subprime foreclosures.

What's more, the biggest mortgage lenders in the country, including Wells Fargo and Bank of America, are under federal mandates to advertise in minority media and offer loans to people on "public assistance."

The government is actually forcing them to target high-risk borrowers for 30-year debt under threat of prosecution. They have to adopt minority-friendly loan programs over the next several years or face investigation for discrimination.

Some of these programs include setting aside millions in prime mortgages for minorities who, according to government documents IBD has reviewed, would ordinarily not qualify for reasons including "the lack of required credit quality, income or down payment."

In effect, Justice is using private banks to carry out affirmative-action lending.

Obama's new credit-fairness police force is actively engaged in the administration's rebooted crusade to boost minority homeownership. CFPB coordinates investigations with Justice and HUD and participates in the Federal Interagency Task Force on Fair Lending.

As IBD also first reported, the little-known task force of bank regulators has dusted off a Clinton-era regulation known as the "Policy Statement on Discrimination in Lending," which warns lenders they have an obligation to be more "flexible" with minority homebuyers with weak credit to make up for "past discrimination."

It's the same result: unsustainable homeownership.

https://www.investors.com/politics/editorials/obama-launched-subprime-crisis-with-lawsuit/

 

Bush inherited a RECESSION, out of control oil price hikes, a ticking 911 time bomb that KKKlinton ignored, and the disastrous DODD/FRANK law which caused all the problems.

Grow a brain, numbnuts. You're WRONG AGAIN.