SVB collapse: Progressives blame 2018 rollback of Dodd-Frank for bank failures

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from Washington Examiner,

Progressive lawmakers are blaming the collapse of two U.S. banks over the weekend on a 2018 bill that rolled back regulations put in place after the 2008 financial crisis.

…the Federal Deposit Insurance Corporation recently had to step in to guarantee deposits for SVB and stop a bank run. A company such as SVB, which was all in on ESG, should have done a better job of stress testing its models to minimize the risk of a bank run. But it instead hired a woke executive to oversee its financial modeling.

Jay Ersapah, the company’s United Kingdom head of risk management, boasted on her profile that she was a “queer person of color” and “first generation immigrant.” Ersapah said she was “privileged” to lead an LGBT task force to “help spread awareness of lived queer experiences.”

Home Depot co-founder Bernie Marcus, a clearly accomplished business leader, said , “These banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is, shareholder returns.”

Pressed about bailing out SVB on Sunday, Treasury Secretary Janet Yellen said federal regulators were focused on making customers whole.

“Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking. And the reforms that have been put in place means that we’re not going to do that again,” Yellen said.

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