In the wake of the collapse of the 16th largest bank in the U.S., many are speculating as to what led to the sudden, spectacular downfall of Silicon Valley Bank. Some have pointed to a faulty risk management strategy, while others have blamed a classic bank run. Still others have blamed the company’s commitment to Democratic causes like diversity, equity, and inclusion (DEI) as the culprit; in a particularly spicy take in the Wall Street Journal, Andy Kessler suggested that the company’s pride in the makeup of its board—”SVB notes that besides 91% of their board being independent and 45% women, they also have ‘1 Black,’ ‘1 LGBTQ+’ and ‘2 Veterans'”—may have been the real culprit.
Kessler’s piece got a hefty dose of online backlash, but there is new evidence for the Go Woke, Go Broke theory of SVB’s downfall—or at least the theory that its focus on racial issues exposed something important about its business acumen (or lack thereof). A database created by the Claremont Institute revealed that SVB either donated or pledged to donate almost $74 million to organizations affiliated with the Black Lives Matter movement.
It only took a few years after the George Floyd riots to find out that many of those aligned with the Black Lives Matter movement were not exactly on the up and up. This is especially true of the Black Lives Matter Global Foundation, which has seen more than its share of scandals
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Article URL : https://www.newsweek.com/svb-gave-74-million-black-lives-matter-its-explains-lot-about-banks-collapse-opinion-1788092