Drudge Retort: The Other Side of the News
Thursday, March 16, 2023

As Wall Street reels from the swift demise of Silicon Valley Bank -- the biggest American bank failure since the 2008 financial meltdown -- some social media users are honing in on a single culprit: its socially aware, or "woke," agenda.




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...But the Santa Clara-based institution's professed commitment to diversity, equity and inclusion, or DEI, wasn't a driver of the bank's collapse, say banking and financial experts. Its poor investment strategies and a customer base prone to make devastating bank runs were.

Here's a closer look at the facts.

CLAIM: Silicon Valley Bank failed because it focused on "woke" policies such as diversity, equity and inclusion.

THE FACTS: The nation's 16th largest bank collapsed because of poor investment and risk strategies that left the bank with insufficient cash to weather a mass withdrawal of assets from its largely tech sector customers, who have been particularly hard hit in the current economy, financial and banking experts explain.

There's also no evidence to support claims that the bank's stated commitment to supporting and investing in diversity and sustainability efforts played a role in its demise, they say.

Social media posts in the wake of the collapse have nonetheless pointed critically to any number of diversity efforts at the bank, such as the launch of a month-long LGBTQ pride campaign or donations to racial justice causes.

Some even cited the bank's 2022 Environmental, Social and Governance (ESG) report, which includes a commitment to provide at least $5 billion in loans, investments and other financing for sustainability efforts by 2027.

"The WOKE agenda coming from SVB is in a large part to blame for their FAILURE," declared a Twitter user in a post that had been liked or shared nearly 4,000 times as of Wednesday. "The insane left-wing agenda is BANKRUPTING our future. Go woke, GET BROKE!"

But the institution's fall had all the hallmarks of a "classic run on the bank," Peter Cohan, a professor of management practice at Babson College in Wellesley, Massachusetts, said in an email. "A focus on DEI had nothing to do with the collapse of SVB."

Rodney Ramcharan, a finance professor at the University of Southern California's Marshall School of Business, agreed, dismissing criticism that the bank reportedly donated millions to racial justice causes over the years as "trivial and irrelevant," given the bank had more than $200 billion in assets before it failed. ...

#1 | Posted by LampLighter at 2023-03-16 08:20 PM | Reply

A Quick Look at the Lying Trumpist Liars Behind that Database on Corporate Giving to "BLM"

According to stories bursting across the right-wing mediasphere today, a key reason for the collapse of Silicon Valley Bank (SVB) was its focus on spreading "woke culture" rather than efficiently managing risk and profits. Ground zero for this is the allegation that SVB had donated over $73 million to the "BLM Movement & Related Causes." That struck me as quite a lot of money for a single company, even a large and profitable one, to give to any cause or even all causes. So I tried to find out where this factoid came from and rapidly found my way to a Trumpist think tank. Perhaps not surprisingly, it's a complete lie.

#2 | Posted by Gal_Tuesday at 2023-03-16 08:41 PM | Reply

Woke us the GQP/Trumper straw man word. They can't even define the word.

#3 | Posted by a_monson at 2023-03-17 11:06 PM | Reply

3 Bank Failures in one week during

"The Strongest Economy" In over 40 years

Keep drinking the Koolaid.


#4 | Posted by shrimptacodan at 2023-03-18 01:11 PM | Reply

"Some even cited the bank's 2022 Environmental, Social and Governance (ESG) report, which includes a commitment to provide at least $5 billion in loans, investments and other financing for sustainability efforts by 2027."

How have those investments and loans performed?

That's what matters.

#5 | Posted by eberly at 2023-03-18 01:19 PM | Reply

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