SVB was "more concerned about global warming than shareholders' returns"

President Joe Biden appeared on Monday in front of the media to give the last details after the collapse of SVB and Signature Bank. Biden affirmed that the system is safe and noted that his government acted swiftly to ensure that all clients of the banks have access to their funds.

Biden also recalled that shareholders and investors would not recover their investment in the institutions. "They knowingly took a risk, and when the risk didn't pay off, the investors lost the money. That's how capitalism works," Biden said during his press conference. He also recalled that the bailout will not be financed by taxpayers, but by the Federal Reserve. He also confirmed the dismissal of the heads of both banks. The Federal Deposit Insurance Corporation (FDIC) has taken control of the two institutions.

Finally, President Biden promised that the reasons why these banks collapsed would be clarified soon and pointed to the guilt of those responsible for this situation. "No one is above the law," he concluded. President Biden reiterated these warnings via Twitter.

Banks with a politically charged agenda

Both SVB and Signature Bank were known for betting heavily on the cryptocurrency business. Signature conducted a very aggressive promotion policy to position itself as a leader in this market. The fall in the value of digital currencies drove down the assets of both firms. They soon found themselves in a difficult situation due to the lack of liquidity. However, just a few weeks before the debacle, they still ranked very favorably in Forbes' national banking rankings: 20th place for SVB and 73rd place for Signature Bank.

The banks were also known for having a very progressive corporate identity, encouraging a woke company culture and bold public stances. In 2021, Signature Bank closed Donald Trump's two personal accounts after the Jan. 6 events on Capitol Hill. The bank accompanied its decision with a statement in which it condemned the actions of the former president: "We witnessed the President of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty."

SVB also followed this trend. The group is known for promoting broad inclusion policies through its human resources department. The same person in charge of these programs is the former head of risk management at the bank, British-born Jay Ersapah. The company designed a protocol for safe spaces and a month-long series of activities to raise awareness of the LGBTQ+ community.

Bernie Marcus, the longtime co-founder of Home Depot, charged last Saturday on Fox News that banks can no longer be "more concerned about global warming than profitability." According to the successful entrepreneur, it is Biden's policies that are pushing banks toward this operating model. "These banks are mismanaged because everyone is focused on diversity and all the woke issues and they're not focused on the one thing they should be," Marcus added in his remarks.

The U.S. economy is facing challenging times. Interest rates rose after the Russian invasion of Ukraine and more entities could find themselves in the same situation as SVB and Signature Bank. According to an exclusive Bloomberg report, a Treasury Department official said he saw more banks with the same problems as SVB and Signature Bank.