Silicon Valley Bank Fails - Commitment To DEI Cited As Part Of Problem

Silicon Valley Bank experienced tremendous growth in recent years as the tech sector flourished, but ultimately failed in the end. Gov. DeSantis and others speculate they were too embroiled with DEI policy that they overlooked the business.

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Santa Clara, CA: Silicon Valley Bank has recently collapsed and is the biggest bank failure since the economic crisis of 2008. It is not often that a bank collapses and the reasons behind it are usually complicated.

SVB is no different.

However, the speculation surrounding the reasons for the closure are unique, relatively speaking. Florida Gov. Ron DeSantis, among others, believe the bank "lost its way" in recent years as they spent a significant amount of time and resources trying to remain diverse, inclusive and equitable. While remaining committed to DEI (diversity, equity, inclusion) it seems they overlooked the business side of the house.


The Rise of SVB

Silicon Valley Bank was your common day bank up until Covid-19. During the pandemic, the tech industry boomed as Americans everywhere were forced to work remotely. As the tech industry took off, SVB was one of the recipients of an unprecedented influx of large deposits and grew exponentially.

During that time, SVB pursued implementing a "woke" policy within its business model.

According to their DEI manual, it states, "We have a commitment to addressing social oppression in all its forms (racism, heterosexism, ageism, ableism, low socio-economic backgrounds, etc.), with a focus on Black, Latinx, and gender representation (groups underrepresented in the Innovation Economy)."

With their commitment to DEI, many critics have publicly stated they forgot to focus on traditional bank business practices that were proven successes and that their priorities were not in line.


Critics Speak Out

Florida Governor Ron DeSantis, a potential 2023 presidential candidate, was among those who criticized SVB. He believes they put business aside for politics.

In a statement made to the media, Gov. DeSantis said, "I mean, this bank, they're so concerned with DEI and politics and all kinds of stuff, I think that diverted from them focusing on their core mission."

Another high-profile critic of SVB and their collapse is Bernie Marcus, co-founder of one of the most successful retail businesses in American history, Home Depot. He, too, shared his disappointment and frustration and called the bank failure "depressing" especially considering the actions of SVB executives weeks before the collapse.

In an interview he did on Fox News, Marcus said, "I feel bad for all of these people that lost all their money in this woke bank. You know, it was more distressing to hear that the bank officials sold off their stock before this happened. It's depressing to me. Who knows whether the Justice Department would go after them? They're a woke company, so I guess not. And they'll probably get away with it."

Kevin O'Leary, a thriving entrepreneur and venture capitalist on television's Shark Tank, also showed frustration, particularly with SVB management. In an interview on Fox News, O'Leary said, "At some point, you have to point a finger at somebody and I blame the board and I blame the management that this bank is a zero!"


Avoid Woke Companies

If you want to avoid this type of problem altogether and only do business with non-woke banks, go to our Align Us App platform first. Research which banks are woke and which ones aren't. Then choose a bank, or any business or organization for that matter, and do business with them.

Our goal is to educate you so you can feel comfortable with the business that you spend your hard earned dollars with.


-Align Us App

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Patricia Shenk
1 year ago

I saw a news broadcast the other night that said SVB invested heavily in ESG and that those investments failed miserably and wiped them out. Then the bankers themselves withdrew their investments. Then some local client depositers heard about it and withdrew their money. Then the bank had no more money to give to the rest of their client depositers!!!

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