Silicon Valley Bank (SVB) has been criticised for focusing too much on diversity and inclusion initiatives, such as investing in startups promoting a 'healthier planet' and hosting Pride celebrations, and not enough on its investments. Despite receiving an A rating for its Environmental, Social and Governance policies, the bank failed to identify problems with its investments as interest rates rose, leading to the bank's collapse. The bank announced that it would invest $5 billion by 2027 to support sustainability efforts and created initiatives to promote diversity and inclusion, including introducing measurable diversity goals for senior leadership positions and creating its own program to advance inclusion and opportunity in the innovation economy. However, for eight months in 2022, the bank did not have a chief risk operator and invested clients' money in low-interest government bonds and securities, which caused the value of SVB's assets to fall and customers to try to withdraw their money. The bank's board included one black member, one LGBTQ+ member, and two veterans, among others who had experience in initiatives to increase diversity and inclusion in their industries.
#diversityandinclusion #sustainabilityinitiatives #SVBcollapse
U.S. government, bank run, emergency measures, U.S. Treasury, Federal Reserve, backstop deposits, Federal Deposit Insurance Corp., access to lending facilities, cash reserves, Silicon Valley Bank, depositors, financial crisis, largest bank failure, economy, potential withdrawal
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