Silicon Valley Bank’s collapse and subsequent government bailout is raising concerns about the influence of left-wing activism on the banking industry. The bank, a major donor to the “Black Lives Matter” movement and other associated groups, was exposed as a risk to numerous business depositors when it became the second-largest group in U.S. history to fail.
The Biden administration has been hesitant to use the term “bailout” to describe the government intervention that saved Silicon Valley Bank, but former Obama administrator Neil Barofsky has called it just that. The government’s bailout of Silicon Valley Bank raises concerns that other banks will also prioritize woke virtue signaling over their customers’ deposits in the hopes of receiving similar government backing.
As the Claremont Institute reports, Silicon Valley Bank had pledged approximately $74 million to “Black Lives Matter” and associated groups. The governance of “Black Lives Matter” has been called into question, and the group has been accused of corruptly distributing funds.
The failure of Silicon Valley Bank serves as yet another warning that companies focused on Environmental, Society, and Governance (ESG) scores and woke politics do not serve their customers well. This is the exact kind of “moral hazard” that can create a domino effect in the banking industry, where banks will feel incentivized to spend big on left-wing causes to ensure that they receive government support.
The administration’s Environmental, Society, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) initiatives will continue to spread like a contagion throughout the bedrock institutions of American capitalism if government bailouts continue to reward companies that prioritize woke virtue signaling over their customers’ needs.
It is time for corporate America to learn from Silicon Valley Bank’s failure and avoid the same mistakes. Rather than focusing on left-wing activism, companies should prioritize their customers and their bottom line.
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Source: TrendingPolitics
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