Silicon Valley Bank amid other bank failures: A cause for alarm

Are bank catastrophes the new normal under Biden‘s economy?

Despite Silicon Valley Bank being named one of America’s Best Banks in 2022 by Forbes’ 13th annual look at America’s Best Banks, winning #15 out of the 100 largest publicly-traded banks based on growth, credit quality and profitability, it has taken a major nosedive. SVB was shut down Friday after it lost $2 billion in a liquidity crisis — becoming largest failure since the Great Recession. The bank is scheduled to reopen this morning under federal ownership.

The Federal Deposit Insurance Corporation (FDIC) has issued this updated and concerning press release titled, “FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California.” Intending to be reassuring, it strikes fear in anyone who is paying attention. The press release states,” Silicon Valley Bank had 17 branches in California and Massachusetts,” using the past tense.

Federal regulators also seized New York regional bank Signature Bank. Signature becomes the third-largest bank to ever fail in the U.S., behind Silicon Valley Bank and Washington Mutual in 2008. First Republic Bank stock plunged by 63% this morning, according to the Wall Street Journal.

The No Fear Act heralded on the FDIC’s website has nothing to do with American’s fear of losing their savings, but is a trendy diversion and inclusivity site focusing on the Office of Minority and Women Inclusion (OMWI) and the production of annual reports of status and progress to Congress, the Attorney General, the Office of Personnel Management, and the U.S. Equal Employment Opportunity Commission.

Losing sight of the reason for its existence, Silicon Valley Bank needs to focus on what caused customers to access it services and leave the leftwing inclusion jargon to the Bidencrats.

Biden’s Treasury Secretary Janet Yellen, a democrat who previously was appointed by Barack Obama, was confirmed by the U.S. Senate on January 25, 2021, by this roll call vote of 84-15. Only 15 Republicans voted against her conformation.