The failure of Silicon Valley Bank (SVB) is an example of the harmful effects of the Biden Administration’s “attempts to harness the federal financial regulatory apparatus in service of left-wing political goals,” 16 state attorneys general (AGs) wrote to top administration officials this week.
The letter, sent to the heads of the Treasury Department, Federal Reserve, FDIC, and the office of the Comptroller of Currency, demands that the Biden administration halt the politicization of the banking industry through climate-related regulations and instead focus the regulatory agencies on true risk management.
“SVB’s failure is a warning sign that the administration’s environmental activism in its financial regulation not only ignores real financial risk but increases it,” one signee, Utah Attorney General Sean D. Reyes said in a statement. “The administration should refocus regulation on true risk and stop pressuring financial institutions to meet impossible net-zero targets.”
Regarding the failure of the Silicon Valley Bank, the AGs say they’re concerned that the Biden Administration’s decision to guarantee all deposits at SVB – even those that were not insured – appears to be a politically-motivated attempt to “provide financial support to an important constituency that did not exercise proper vendor oversight.”
The AGs cite SVB as a perfect example of the danger of the Biden Administration’s “regulatory posture of viewing climate change as the leading risk to the finance industry, and as a ripe business opportunity.”
“SVB appears to have been focused more on environmental issues than safe and sound operations, which is perfectly consistent with your regulatory approach,” the AGs write, denouncing the Biden Administration’s regulatory agencies for:
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