As you know, Silicon Valley Bank has folded along with Signature Bank and a few other banks are showing signs of trouble. Predictably, Joe Biden- on whose watch his happened- immediately blamed Donald Trump.
President Joe Biden blamed former President Donald Trump for the collapse of Silicon Valley Bank (SVB) and Signature Bank, attributing their demise to Trump’s rollback of some Obama-era policies.
“During the Obama-Biden administration, we put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank law to make sure that the crisis we saw in 2008 would not happen again,” Biden said during his Monday remarks.
Dodd-Frank law, you say? Hold that thought.
He was followed closely by Indian princess Elizabeth Warren who pointed a smoke signal at Trump.
Bank failures are the direct result of leaders in Washington weakening the financial rules. In 2018, President Trump signed a law rolling back critical protections. I fought these changes. I warned that banks would run up risk. I wish I’d been wrong.
It is true that Trump signed a bi-partisan bill which rolled back some regulations in 2018:
In 2018, Congress passed bipartisan legislation signed into law by President Donald Trump weakening regulations on mid-sized financial institutions like Silicon Valley Bank, whose collapse last week set off fears of another 2008-like financial crisis.
The measure was supported by 33 House Democrats and 17 Democratic senators, delivering Trump and the banking industry a key bipartisan victory.
Barney Frank disagreed:
“I don’t think that had any effect,” Frank said. “I don’t think there was any laxity on the part of regulators in regulating the banks in that category, from $50 billion to $250 billion.”
But regulators watching SVB were lax, but it had nothing to do with the 2018 legislation.
Paul Sperry #1: The SVB regulator had Joe Biden eyes.
In early 2022, failed Silicon Valley Bank regulator Mary Daly, San Francisco Fed chief, denied the economy was suffering from painful inflation: “That’s not what I see.” She also didn’t see need for steep rate hikes. She missed EVERYTHING. Who’s regulating the regulators?
Paul Sperry #2 nails it
Fed Reserve Bank of SF that missed massive red flags @ SV Bank run by openly gay diversity quota & Janet Yellen protege Mary Daly who focused more on “climate change and inequities” than regulating rogue banks like SVB. Also chairs SF Fed Diversity & Inclusion Council
SVB had no Risk Officer for nine months.
Collapsed lender Silicon Valley Bank operated without a chief risk officer between April 2022 and January 2023 while the operation’s United Kingdom-based Head of Risk stands accused of prioritizing pro-diversity initiatives over her actual role.
And there it is. It was all about woke investing: ESG and DEI.
Meanwhile, Jay Ersapah, who acts as CRO for the bank in Europe, Africa and the Middle East and who describes herself as a ‘queer person of color from a working-class background’ – organized a host of LGBTQ initiatives including a month-long Pride campaign and implemented ‘safe space’ catch-ups for staff.
In a corporate video published just nine months ago, she said she ‘could not be prouder’ to work for SVB serving ‘underrepresented entrepreneurs.’
Professional network Outstanding listed Ersapah as a top 100 LGTBQ Future Leader.
‘Jay is a leading figure for the bank’s awareness activities including being a panelist at the SVB’s Global Pride townhall to share her experiences as a lesbian of color, moderating SVB’s EMEA Pride townhall and was instrumental in initiating the organization’s first ever global “safe space catch-up”, supporting employees in sharing their experiences of coming out,’ her bio on the Outstanding website states.
It adds that she is ‘allies’ with gay rights charity Stonewall and had authored numerous articles to promote LGBTQ awareness.
This is a classic lesson in what not to do in banking
Separately she was also praised in a Facebook post by the group ‘Diversity Role Models,’ a charity which campaigns against homophobic, biphobic and transphobic bullying in UK schools.
In a corporate document for the bank she said: ‘”You can’t be what you can’t see” has always been a quote that stuck with me.
‘As a queer person of color and a first generation immigrant from a working class background, there were not many role models for me to ‘see’ growing up.
‘I feel privileged to help spread awareness of lived queer experiences, partner with charitable organizations, and above all create a sense of community for our LGBTQ+ employees and allies.’
You know who joined Signature Bank and pushed for loosening the Dodd-Frank law?
WASHINGTON—Former Rep. Barney Frank co-sponsored the law that tightened banking regulations after the financial crisis, but since leaving office he has been working the other side of the street—as a board member of Signature Bank, which regulators shut down Sunday.
With over $200 billion in assets, SVB was not affected by the 2018 regulation softening. And all those smartasses blaming Trump? If they were so smart, why have not one of them pushed to change the law over the last two years?
They should have spent as much time concerning themselves with a bank’s function and survival as they were with diversity, equity, inclusion and pronouns. This is why Republicans are pushing to stop pensions from being pushed to invest in ESG (Environmental, Social and Governance).
There is a real lesson here: Go Woke, Go Broke.
DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education.
DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed.
Except for liberals being foolish.