In a stunning turn of events, Silicon Valley Bank (SVB) faced a rapid collapse last week, incurring a devastating $1.8 billion loss. As investments in bonds lost value and interest rates rose, the bank’s share price dropped a staggering 60%.
With no other choice, the Federal Deposit Insurance Corporation (FDIC) stepped in to take control of the bank’s operations.
What makes this story particularly intriguing is the strong Democratic presence on the bank’s board of directors. According to a New York Post report, the 12-member board included a Hillary Clinton mega-donor, a former Obama political appointee, and a major contributor to Democrats who owns a vineyard near Nancy Pelosi’s home. The bank’s strategy seemed to be centered around aligning itself with the Democratic Party.
Donations were made to prominent Democratic politicians and political action committees, including Obama, Clinton, Biden, Pelosi, Schumer, and Warner.
A source told the New York Post that SVB was known as the “go-to bank for woke CEOs,” and that the companies it provided loans to all pursued a “woke agenda.”
The report also brings to light the fact that the majority of the board members lacked the necessary banking expertise, with the exception of Tom King. This issue is expected to be a focal point in the Justice Department’s investigation into the bank’s collapse.
In conclusion, the downfall of Silicon Valley Bank serves as a stark reminder of the dangers of intertwining politics with financial institutions. Banks must prioritize sound financial practices and remain focused on their core mission, rather than allowing political allegiances to steer their strategies.