Silicon Valley Bank collapse concerns founders of color

The Associated Press ^ | March 19, 2023 | By KAT STAFFORD and CLAIRE SAVAGE

[Oldeconomybuyer]

In the hours after some of Silicon Valley Bank’s biggest customers started pulling out their money, a WhatsApp group of startup founders who are immigrants of color ballooned to more than 1,000 members.

Questions flowed as the bank’s financial status worsened. Some desperately sought advice: Could they open an account at a larger bank without a Social Security Number? Others questioned whether they had to physically be at a bank to open an account, because they’re visiting parents overseas.

One clear theme emerged: a deep concern about the broader impact on startups led by people of color.

While Wall Street struggles to contain the banking crisis after the swift demise of SVB — the nation’s 16th largest bank and the biggest to fail since the 2008 financial meltdown — industry experts predict it could become even harder for people of color to secure funding or a financial home supporting their startups.

Banking expert Aaron Klein, a senior fellow in Economic Studies at the Brookings Institution, said SVB’s collapse could exacerbate racial disparities.

“That’s going to be more challenging for people who don’t fit the traditional credit box, including minorities,” Klein said. “A financial system that prefers the existing holders of wealth will perpetuate the legacy of past discrimination.”

Some conservative critics asserted SVB’s commitment to diversity, equity and inclusion were to blame, but banking experts say those claims were false. The bank slid into insolvency because its larger customers pulled deposits rather than borrow at higher interest rates and the bank’s balance sheets were overexposed, forcing it to sell bonds at a loss to cover the withdrawals.

[Jewbacca]

Why?

Because people have confirmed that making a bad loan because someone is black is still a bad loan?

[AAABEST]

Bank runs are waisist.

[WashingtonSource]

Oh the horror! People of color are impacted more than white people. It is the end of the world.

[brookwood]

“One clear theme emerged: a deep concern about the broader impact on startups led by people of color. “
That was the theme for the people who had deep ingrained racist attitudes. The non-racist people were just worried about getting their money.

[Bookshelf]

Isn’t white a color?

[Thommas]

One clear theme emerged: a deep concern about the broader impact on startups led by people of color.

Embedded in this facetious lie was the nuance that the victim group did not have SSNs, green cards, or valid IDs.

I believe that the clue was in the word 'immigrants.' This "victim class" is comprised of illegal aliens.

[Wallace T.]

As soon as I saw that AP produced this article, Deep State propaganda is going to follow. Any time you see the term, expert, cited, you know that this is standard legacy media operating procedure. Citing the Brookings Institute, a left wing think tank, on any subject, is another red flag of oncoming liberal nonsense. Management at Silicon Valley Bank was mostly white and leftist. Whether back in LBJ's day or in the Biden era, white liberals have thrown a few scraps of meat to favored blacks, usually influencers like ministers or celebrities to feed propaganda to the unflavored blacks. A few loans to black businesses is the 2023 equivalent of giving plantation overseers better food and housing than the other black slaves.

[realcleanguy]

This is not an issue for poor and middle class. SVB is a bank that the average person would never be a part of. These were investors with millions of dollars.

The article is trying to bring racism into the conversation, and the LW bloggers will parrot it. The rest of the world must think we still have slaves in America, or that we are a backwards 3rd world country filled with plantation owners. Nothing could be further from the truth.

[Wallace T.]

unflavored = unfavored

[butlerweave]

Silicon Valley Bank the Slush Fund for the Woke

[bert]

You are correct

The article is ordinary run of the mill Black Ass Kissing.

For Democrats, Kissing Black Ass is existential

[Brian Griffin]

Ilictos can apply for and get a taxpayer ID I believe.

Ilictos must pay income tax on their unlawful earnings and income.

If I was to open a Mexican bank account, I would comply with Mexican law. I assume they would accept my US passport as ID.

[clintonh8r]

“Startup founders who are immigrants of color.” =. Millionaire Indians (dot, not feather).

[Brian Griffin]

“backwards 3rd world country”

repressive Third World country run by idiots

[Andy from Chapel Hill]

The bigger question is what has happened to all of the VC firms that “guaranteed” payment if the loans to unprofitable startups.

(Many VC firms were able to leverage their venture funds by having the portfolio companies borrow from SVB — hoping that one day the startups could pay off the loans, though earnings or raising additional equity in an IPO.)

[Brian Griffin]

Asian Indians like to invest money in capital intensive businesses like motels.

They don’t like the fact that the US dollar loses value steadily.

[Brian Griffin]

Such loans would mainly be for capital equipment I would imagine.

The loans would probably carry substantial interest rates.

[bigdaddy45]

It took them a whole week to somehow turn this into a racial issue? They’re slipping.

[Brian Griffin]

The Woke of the San Francisco Bay area buy startups at low prices to resell to other people at top dollar.