ESG investments contributed to bank problems

 Fox Business:

Silicon Valley Bank reckless with risk, ESG push: State Financial Officers

SVB had catered to the Bay Area tech community and pursued ESG initiatives along with a joint venture in China

The failure of Silicon Valley Bank is being cited by the State Financial Officers Foundation as an example of what can go wrong when financial institutions prioritize political agendas over basic risk management.

The State Financial Officers Foundation — a group of Republican state auditors, chief financial officers, controllers, and treasurers — released a statement that said Silicon Valley Bank (SVB) "should have focused on safeguarding their depositors’ money and making sound investments, but it’s clear their focus was on pushing a progressive agenda."

"Environment, Social, and Governance (ESG) prioritization is about pushing a progressive political agenda even when it is at odds with sound financial or business decision-making," the financial officers wrote. "Instead of placing an emphasis on hiring qualified candidates for critical positions within the company and making prudent financial decisions, SVB focused on ESG, particularly diversity and inclusion initiatives, and courting China while the bank left its chief risk officer position open for eight months."
...

This is the reason many fund managers have resisted institutions that made the ESG investments. 

See, also:

Ron DeSantis Launches Alliance With 18 Other States To Fight Against Biden’s Woke ESG Agenda

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