DOJ investigating Silicon Valley Bank collapse
'Outnumbered' panelists discuss the Biden administration's response to ongoing crises in America.
The board of directors of Silicon Valley Bank (SVB), which collapsed in less than 48 hours last week, was packed with staunch Democrats, according to a report.
Last week, SVB suffered $1.8 billion in losses as it faced a liquidity crisis caused by souring investments in bonds that lost value as interest rates rose. The bank's share price fell 60% last week and the Federal Deposit Insurance Corporation (FDIC) stepped in on Friday to take over the bank's operations as depositors panicked and rushed to withdraw their money.
The bank's management is now under heavy scrutiny as enforcement agencies investigate what went awry and sent the 16th-largest bank in the country into a tailspin.
A customer stands outside a shuttered Silicon Valley Bank location on March 10, 2023, in Santa Clara, California. (Justin Sullivan / Getty Images)
On Tuesday, the New York Post reported that among the 12 members of SVB’s board of directors who were supposed to guide the bank away from catastrophic errors include a Hillary Clinton mega-donor who went to a Shinto shrine to pray after Donald Trump won the White House, a former President Barack Obama political appointee, and a prolific contributor to Democrats who owns a Napa Valley vineyard 15 minutes from the home of former House Speaker Nancy Pelosi, D-Calif.
According to the report, Democrat alignment was part of the bank's overall strategy.
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A FDIC sign is posted at a Silicon Valley Bank branch in Wellesley, Massachusetts, on March 11, 2023. (AP Photo / Peter Morgan)
The board members donated to Obama, Clinton, President Joe Biden, local Democrat congressional reps such as Pelosi, as well as political action committees for Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Mark Warner, D-Va., a longtime member of the powerful Senate Banking Committee, according to the Post.
"Everyone knew it was the go-to bank for woke CEOs," one source told the New York Post. "They knew they were aligned politically. The companies SVB loaned money to all had a woke agenda."
President Joe Biden (Drew Angerer / Getty Images / File)
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The report alleges that most of the SVB board lacked actual banking expertise, except for Tom King, a factor that's likely to be part of the Justice Department's probe into the bank's collapse.
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