In recent news, Silicon Valley Bank (SVB), a substantial donor to the controversial activist group “Black Lives Matter,” has become the second-largest bank in U.S. history to collapse.
The Federal Deposit Insurance Corporation (FDIC) stepped in, closing the bank and placing numerous business depositors at risk.
However, the U.S. government, led by President Joe Biden and Treasury Secretary Janet Yellen, has intervened to support billions of the bank’s deposits, carefully avoiding the term “bailout.”
Despite their avoidance of the term, Neil Barofsky, the former Obama administrator who oversaw the Troubled Asset Relief Program, has clarified that the government’s intervention does indeed qualify as a bailout.
The Claremont Institute has revealed that SVB pledged an astonishing $74 million to “Black Lives Matter” and associated groups. The activist group has been accused of corruption and financial mismanagement, raising questions about the bank’s priorities.
Will Hild, the executive director of Consumers’ Research, has pointed out that SVB’s failure demonstrates a focus on promoting left-wing activism rather than safeguarding their customers’ deposits.
Hild explains that companies that prioritize Environmental, Social, and Governance (ESG) scores and woke politics often underperform in terms of customer service.
The Biden administration’s support of the failing bank sets a dangerous precedent. By intervening, the government is implicitly encouraging banks to back left-wing causes, potentially leading to a domino effect in the banking industry.
This moral hazard could further the spread of the administration’s ESG and Diversity, Equity, and Inclusion (DEI) initiatives, impacting the foundations of American capitalism.