Staff Reports
The "Woke Bank," also known as Silicon Valley Bank, which recently failed and was taken over by the Federal Deposit Insurance Corporation (FDIC), has been found to have contributed significantly to the contentious activist organization "Black Lives Matter." Despite initially rejecting a bailout, the U.S. government has now intervened by guaranteeing billions of dollars in deposits, leading to a contentious discussion about whether it is appropriate to reward negative actions.
GO WOKE GO BROKE https://t.co/y9DosCnhMa
— Jenna Ellis (@JennaEllisEsq) March 14, 2023
According to the Claremont Institute, Silicon Valley Bank had committed around $74 million to "Black Lives Matter" and related organizations, despite concerns about the charity's questionable management and alleged mismanagement of funds. Neil Barofsky, the former overseer of the Troubled Asset Relief Program during the Obama administration, has acknowledged that this qualifies as a "bailout," stating that "If the government is intervening to prevent private losses, then this would certainly be considered a bailout."
According to the Claremont Institute, records show that Silicon Valley Bank had pledged approximately $74 million to "Black Lives Matter" and associated groups. (Note: The website appears to be down.)https://t.co/jUF9BwwSDy
— Kyle Becker (@kylenabecker) March 14, 2023
Consumers' Research Executive Director, Will Hild, has implied that Silicon Valley Bank's downfall "is a further indication that instead of safeguarding their customers' deposits, SVB was more interested in promoting woke values." He continued by stating that "Repeatedly, we observe the same trend: companies that prioritize ESG scores and woke politics frequently underperform in customer service. The rest of corporate America should take note of SVB's failure and learn from it before they become the next organization to attract negative attention for their laughably deficient management practices."
Unfortunately, it appears that President Joe Biden and Treasury Secretary Janet Yellen have chosen to ignore this lesson and instead reward Silicon Valley Bank for their irresponsible behavior by bailing them out with taxpayer money. This sends a clear message to other banks that if they donate large sums of money to left-wing causes, they can be sure that the federal government will have their back when things go wrong. This kind of moral hazard is a dangerous precedent to set and could lead to a domino effect in the banking industry, with more and more banks choosing to prioritize woke virtue signaling over protecting their customers’ deposits.
