- James Comer attributed Silicon Valley Financial institution’s failure to its “woke” ESG investments.
- “This generally is a pattern and there are penalties for unhealthy Democrat coverage,” Comer mentioned on Sunday.
- Bernie Sanders mentioned a 2018 legislation signed via former President Donald Trump is “without delay” answerable for the cave in of SVB.
GOP Rep. James Comer, the chairman of the Space Oversight Committee, slammed Silicon Valley Financial institution, or SVB, as “probably the most woke banks” in america.
“We see now popping out they had been probably the most woke banks of their quest for the ESG-type coverage and making an investment,” Comer mentioned, regarding environmental, social, and governance insurance policies.
“This generally is a pattern and there are penalties for unhealthy Democrat coverage,” the Kentucky congressman persevered on Sunday’s episode of Fox Information’ “Sunday Morning Futures.”
—Aaron Rupar (@atrupar) March 12, 2023
Comer didn’t give an explanation for which environmental sustainability-linked investments would have led to SVB’s failure, or how they might have finished so.
The phrase “woke” issues to an consciousness of the way some programs may also be unjust, but it surely has additionally been utilized by right-wing figures as a catch-all time period for innovative insurance policies.
SVB did put money into cleantech and environmental sustainability.
“We serve the ones growing certain environmental exchange,” the financial institution mentioned on its web page. “From selection power answers to agricultural breakthroughs, we improve folks and companies riding towards a more fit planet.”
SVB is some distance from the one monetary establishment to have put money into sustainable making an investment. ESG investments and inexperienced shares noticed a growth again in 2021. As of 2021, $18.4 trillion have been invested in ESG-related property, in keeping with an October 2022 file via PwC. However conservative lawmakers have railed in opposition to ESG investments, calling it “woke capitalism.”
And whilst Comer cited “unhealthy Democrat coverage” in SVB’s failure, some Democratic figures have blamed Trump-era insurance policies for the financial institution run. On Sunday, Democratic Sen. Bernie Sanders mentioned a 2018 legislation signed via former President Donald Trump is “without delay” answerable for the cave in of Silicon Valley Financial institution. The legislation rolled again restrictions round smaller banks like SVB, and didn’t matter them to the similar scrutiny that giant monetary establishments need to conform to.
Silicon Valley Financial institution’s shoppers began operating for the exits after the financial institution’s control offered $21 billion value of bonds at a $1.8 billion loss. The Federal Deposit Insurance coverage Company, or FDIC, close down the financial institution on Friday. It has grow to be the largest financial institution failure in america because the 2008 monetary disaster.
In a remark on Sunday, america Treasury, Federal Reserve Board, and the FDIC introduced all depositors could be absolutely secure and would have get right of entry to to all their money beginning Monday.
Representatives for Comer and Silicon Valley Financial institution didn’t instantly reply to Insider’s requests for remark despatched outdoor common industry hours.
