You Can Bank on it: A Cheat Sheet on the SVB Collapse - American Thinker"...But that’s not all there is to the story.
- Woke Lending and the Biden Role in It
Kim Strassel reports that the bank, at the
inducement of the administration lent money to some 1550 companies in the areas of
“climate technology and sustainability.” None of these were likely to be profitable, and they put the money SVB lent them on deposit in the bank which bought the government bonds...
Strassel continues:
“We serve those creating positive environmental change,” SVB’s website brags, noting that the bank worked with some 1,550 companies in the “climate technology and sustainability sector.”
Most of these companies weren’t filling some vital market need. Rather, as the Journal reported, SVB was beloved for its willingness to offer “banking services to startups that often weren’t profitable, in some cases didn’t have a product, and would otherwise have a hard time getting a line of credit or a loan from a larger bank.” One tech entrepreneur provided a more scathing description of SVB’s products: “They’re basically subprime business loans. You’re talking about companies that have no credit profile, they’re burning cash and are unlikely to raise the same type of capital because of interest rates. It was basically social credit.”
What inspires a bank to disregard risk and shower money on products or services that nobody is clamoring to buy?...
Strassel amplifies this in a
Wall Street Journal editorial, noting that the $1.2 trillion “infrastructure bill” was
“a starting gun for a clean-energy frenzy.” The act manipulated the market to fund green energy projects rather like Obama’s stimulus bill gave us Solyndra, which
after receiving huge federal loan guarantees, collapsed, causing substantial losses...
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