Bank of America, Citigroup, Morgan Stanley, Goldman Sachs and JPMorgan Chase have just abandoned the Net Zero Banking Alliance. While it seems to be yet another dire omen for so-called environment, social and corporate governance (ESG) investing, it would be premature for people on the Right to imagine that the Left’s lock on the finance industry is ending.
ESG investing is notionally the idea that investors should consider the eponymous non-financial factors of ESG in making finance and investment decisions. The biggest part of “ESG” investing is the “E” (environment) and the biggest part of the “E” is climate and the dubious goal of “net zero emissions,” which I have previously written about <a href="https://www.wsj.com/articles/a-quiet-refutation-of-net-zero-climate-change-emissions-energy-global-warming-sec-goals-clean-power-11672262963?mod=opinion_lead_pos8" target="_blank" rel="noopener">here</a> and <a href="https://www.wsj.com/articles/net-zero-never-mind-environment-electrical-grid-carbon-emissions-climate-change-southern-co-energy-information-administration-db856556?mod=opinion_lead_pos10" target="_blank" rel="noopener">here</a>.
The phenomenon of ESG investing started out in the 1960s as “socially responsible investing” (SRI) investing, was rebranded as “corporate social responsibility” investing in the late 1990s and then rebranded again as ESG investing in the 2010s.
SRI/CSR/ESG investing was invented by the Left as a means of using stock ownership for political purposes. The practice started with labor unions in the 1960s. After the election of Ronald Reagan in 1980, a cadre of Left-wing activists got together to figure out how to use investment as a means of advancing the rest of the Left’s agenda.
In “Biz-War and the Out of Power Elite,&#8221; author Jarol B. Manheim writes, “22 young and wealthy individuals who shared a common concern about the conservative turn the country had taken … hit upon the idea to pool their [financial] resources and direct them at what they saw as socially and politically desirable programs&#8230;” aimed at corporations. Though it took time, this program succeeded beyond their wildest dreams. Meanwhile, the Right was largely asleep.
While Nobel laureate Milton Friedman prominently pushed back against SRI investing in his 1970 New York Times magazine article entitled, “The Social Responsibility of Business Is to Increase Its Profits,” there was no organized follow-up until 2005. At that point, a friend of mine and I launched a publicly traded mutual fund called the Free Enterprise Action Fund to push back against the success the Left was having in foisting its CSR agenda on publicly-traded companies.
While our fund had <a href="https://www.wsj.com/articles/SB114411692660116163" target="_blank" rel="noopener">success</a>, we didn’t have the resources to survive the catastrophic market conditions of the housing bubble collapse. The deep-pocketed Left, though, easily survived the tough market conditions and emerged on the other side with near total control of the finance industry with its rebranded and steroidal ESG investing strategy. Virtually all large banks and Wall Street firms joined one or more of the Net Zero Bank Alliance, Net Zero Asset Managers, Net Zero Insurance Alliance, Glasgow Financial Alliance for Net Zero (GFANZ), Climate Act 100+ and other similar groups.
But this success bred arrogance on the Left and awoke conservatives to a degree that the Free Enterprise Action Fund could only have dreamed about in the 2000s. By 2020, the ESG empire and its anti-fossil fuel, anti-conservative, DEI and other “woke” policies and practices had sufficiently alarmed red state politicians into pushback. State investigations, hearings and laws reining in ubiquitous ESG actors and activities popped up. Congress got involved. Then, ESG investing began to reveal itself as <a href="https://x.com/JunkScience/status/1866505394635645146" target="_blank" rel="noopener">a poor investment strategy.</a>
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Perhaps most importantly, though, it had become increasingly clear that the ESG actors were illegally colluding as a cartel, possibly running afoul of anti-trust laws. While the ESG actors could possibly organize themselves into pushback against red states, the post-2024-election prospect of facing a federal government entirely controlled by Republicans would be too daunting. So, amid the holiday distractions, Bank of America, Citigroup, Morgan Stanley, Goldman Sachs and JPMorgan Chase all dropped out of the Net Zero Banking Alliance.
But those concerned about ESG would be wise not to declare victory and move on. The Left has acquired immense influence and power over the financial industry and has no intention of surrendering it. ESG may be dead as brand, but not as a strategy. The Left has been invested in SRI/CSR/ESG for a long time and for the long-term. While they will likely head underground for a few years, they will certainly be plotting a comeback that may start as soon as the 2026 elections.
* * *
Steve Milloy is a senior legal fellow with the Energy and Environment Legal Institute.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

NYSE Opens For Last Day Of Trading In 2024

As Banks Flee ESG, Conservatives Should Remain Vigilant

Bank of America

Banking

Citigroup

finance

Goldman Sachs

JP Morgan

Opinion

Social Justice

Woke Culture

America’s most powerful financial institutions appear to be promoting young professionals on the basis of race and sex in the name of diversity, equity, and inclusion (DEI).
Morgan Stanley and Wells Fargo both hosted summer programs that barred white men unless they happened to be disabled, a veteran, or identify as LGBT. Goldman Sachs held career advancement summits tailored to students of specific demographic backgrounds, while JP Morgan hosted a scholarship and internship program that openly excluded white and Asian students. Bank of America, meanwhile, ran a &#8220;diversity fellowship&#8221; program that solicited applicants from non-white, non-Asian racial backgrounds.
The programs collectively furthered the leftwing DEI agenda, which presupposes certain demographic groups benefit from undue privilege at the expense of oppressed groups. Corporations across various industries have established racially-based hiring and advancement programs to rectify this alleged injustice by engaging in anti-white, and in some cases, anti-Asian discrimination, which may run afoul of the law.
<a href="https://www.amiracist.com/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.amiracist.com/&amp;source=gmail&amp;ust=1723906643414000&amp;usg=AOvVaw0FrEnqphhXjx_5ccQOsL_i">Tickets for “Am I Racist?” are on sale NOW! Buy here for a theater near you.</a>
The financial industry&#8217;s embrace of DEI could be disastrous, <a href="https://www.newfounding.com">New Founding</a> CEO Nate Fischer told The Daily Wire.
&#8220;The move to DEI reflects a broader trend away from even aiming for the entrepreneurial investment of capital—a primary driver of wealth creation in our country—and toward a bureaucratic, formulaic model of capital allocation that rewards large bureaucratic corporations and other politically connected parties rather than those with the potential to produce strong returns,&#8221; Fischer explained.
Morgan Stanley’s <a href="https://morganstanley.tal.net/vx/candidate/apply/16329">Early Insights</a> program, a summer training program that teaches undergraduate students about the financial field, is aimed specifically at those who come from “historically underrepresented populations” and gives participants the opportunity to apply for a summer analyst position.
“One way we demonstrate our commitment to diversity is through our Summer Internship Programs,” Morgan Stanley says, calling it “an integral part of our diversity recruiting efforts.”
“Historically underrepresented populations in the finance industry include: women, Hispanic, Black, veteran, disabled, LGBTQ+, and first-generation college student populations,” Morgan Stanley states under the header “eligibility requirements.”
Morgan Stanley is far from the only financial institution that appears to discriminate against white and Asian men. Wells Fargo also hosted an <a href="https://web.archive.org/web/20230805065849/https://www.wellsfargojobs.com/en/university-programs/cib-mba-diversity-fellowship/">MBA Diversity Fellowship</a> that similarly steers applicants into a summer internship program and offers $35,000 towards the MBA programs of those who accept and complete the internship program.
“The fellowship is designed to be a best-in-class program to pipeline high-potential underrepresented candidates into our Investment Banking Summer Associate Program,” Wells Fargo states. The institution goes on to explain that the term “underrepresented candidates” includes those who are “female, Black/African American, Latinx/Hispanic, Asian, Native American/Alaskan Native and LGBTQIA+ students, as well as protected veterans and people with disabilities.”
Goldman Sachs <a href="https://www.goldmansachs.com/careers/students/programs/americas/possibilities-summits.html">Possibilities Summits</a> does not appear to be racially-biased at first blush, merely intended for undergraduate students who want to “cultivate top industry skills and explore the wealth of opportunities available at Goldman Sachs.”
But the company hosts several summits, each aimed at a different identity group. There’s the “Black Possibilities Summit,” “HBCU Possibilities Summit,” “Hispanic/Latinx Possibilities Summit,” and the “Women’s Possibilities Summit.” White and Asian men only appear to be eligible if they meet the criteria of other identity-based summits for those who identify as LGBT, are veterans, attend a City of New York school, or are disabled.
A now-deleted page from JP Morgan advertised an undergraduate scholarship and internship program that appeared to explicitly engage in racial discrimination against white and Asian students. The details of JP Morgan’s “Launching Leaders Undergraduate Program” have been <a href="https://archive.ph/L39XO">preserved</a> on the Baruch College website.
“The program is open to Black, Hispanic and Native American sophomores and juniors from all majors who are interested in financial services and have a 3.5 GPA minimum,” the description reads. “The Launching Leaders Undergraduate Scholarship includes internship opportunities, as well as scholarships of up to $15,000. It gives talented Black, Hispanic and Native American students the chance to fulfill their career ambitions.”
A spokeswoman for JP Morgan told The Daily Wire that the company has not hosted the program for “many years,” but did not respond when asked if the company was willing to state on the record that it would not host discriminatory internship programs in the future.
<a href="http://www.amiracist.com/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=http://www.amiracist.com/&amp;source=gmail&amp;ust=1723906643410000&amp;usg=AOvVaw1iu8MeX_3KeUUnmn0zKHxE">WATCH THE TRAILER FOR &#8216;AM I RACIST?&#8217; — A MATT WALSH COMEDY ON DEI</a>
Bank of America&#8217;s MBA Diversity Fellowship Program “will award merit-based fellowships to individuals who are Black/African American, Hispanic/Latino, Native American, military veterans, LGBT+, students with disabilities and women in their first year of business school.”
The financial institution adds a caveat, however, and explains “while our goal is to target underrepresented groups, all eligible students regardless of background are encouraged to apply.”
While many of these internship and career opportunity postings do not explicitly bar people from certain backgrounds from applying, they do indicate that those from certain backgrounds are particularly encouraged to apply, and necessitate that those from white or Asian backgrounds meet other criteria that those from other backgrounds are not required to meet as a condition of eligibility.
David Bernstein, a professor at George Mason&#8217;s Antonin Scalia School of Law, told The Daily Wire that companies may still be engaging in illegal discrimination even if they technically allow certain qualified whites or Asians into programs.
&#8220;If you are giving illegal preferences based on race, they don&#8217;t become lawful because you are also giving other preferences not based on race,&#8221; Bernstein explained.
He added that the Biden administration appears to have adopted the perspective that programs like those from these financial institutions do not constitute discrimination before calling this approach &#8220;clearly inconsistent with Supreme Court precedent.&#8221;
The U.S. Equal Employment Opportunity Commission (EEOC) does <a href="https://www.eeoc.gov/prohibited-employment-policiespractices">discuss</a> job recruitment and advertising practices, specifically barring those that show racial preferences.
“It is illegal for an employer to publish a job advertisement that shows a preference for or discourages someone from applying for a job because of his or her race, color, religion, sex,” the EEOC explains. “It is also illegal for an employer to recruit new employees in a way that discriminates against them.”
The financial and banking sectors are hardly the only industries that have openly discriminated against white and Asian applicants, however. A series of investigations from The Daily Wire revealed that DEI discrimination is commonplace across a range of different industries.
NASCAR, for example, <a href="https://www.dailywire.com/news/blatantly-illegal-nascar-bans-white-applicants-from-diversity-internship">hosted two different internships</a> that explicitly listed certain racial backgrounds as program requirements, only omitting white people. Bernstein told The Daily Wire that NASCAR&#8217;s program requirements were “blatantly illegal.”
<blockquote class="twitter-tweet">
&#8220;Blatantly Illegal:&#8221; NASCAR hosted a paid &#8220;diversity internship&#8221; that banned white applicants on the basis of their race, my latest report in <a href="https://twitter.com/realDailyWire?ref_src=twsrc%5Etfw">@realDailyWire</a> reveals.
But it&#8217;s just one of NASCAR&#8217;s several racially discriminatory diversity initiatives.
Thread🧵 <a href="https://t.co/hDWqsAd1iX">pic.twitter.com/hDWqsAd1iX</a>
— Spencer Lindquist 🇺🇸 (@SpencerLndqst) <a href="https://twitter.com/SpencerLndqst/status/1696158071221866511?ref_src=twsrc%5Etfw">August 28, 2023</a></blockquote>
The owner of the New England Patriots, Robert Kraft, recently <a href="https://www.dailywire.com/news/new-england-patriots-owner-under-fire-for-discriminatory-bipoc-job-requirement">came under fire</a> after it was revealed that his company, the Kraft Group, listed a job posting that was only open to those who are “BIPOC,” an acronym that stands for “black, indigenous, people of color.”
Multiple major tech companies have also held programs that discriminate against white and Asian people on the basis of their race. The Daily Wire <a href="https://www.dailywire.com/news/oracle-internship-scholarship-opportunities-bar-whites-and-asians-on-the-basis-of-race">revealed</a> that Oracle hosted internship and scholarship opportunities that barred both whites and Asians, with approved racial groups being listed under the program’s “eligibility requirements.”
Apple hosted an entrepreneur training program that required participating companies to have “a black, Hispanic/Latinx, or Indigenous founder, cofounder, or CEO” as well as a developer from the same racial and ethnic backgrounds, The Daily Wire <a href="https://www.dailywire.com/news/apple-entrepreneur-camp-program-bars-applicants-based-on-race">revealed</a>.
Corporations from across different sectors, including Bayer Pharmaceuticals, US Bank, Best Buy, and Liberty Mutual all participated in a <a href="https://www.dailywire.com/news/major-bank-pharmaceutical-giant-participated-in-mckinsey-training-that-banned-white-people">training program</a> from McKinsey and Company that barred white people on the basis of their race.

Morgan Stanley Building

America’s Top Banks Host Programs That Discriminate Against White And Asian Men

Banks

Diversity Equity and Inclusion (DEI)

The Lee County Sheriff&#8217;s Office (FL) released video footage over the weekend that showed the moment a police sniper shot through a computer monitor to kill a bank robber who took hostages.
The incident happened in February when an unnamed 36-year-old man armed with a knife and claimed to have a bomb entered a Bank of America branch in Fort Myers.
&#8220;He had two hostages at this point and we tried to negotiate with him continuously,&#8221; Lee County Sheriff Carmine Marceno said at the time. &#8220;At one point during negotiations he became physical, he started to put one of the hostages in a headlock and he had the knife to her throat.&#8221;
&#8220;SWAT team was in place, when he presented deadly like that, our SWAT sniper shot and killed the suspect,&#8221; he added.
Police said in a video released on Saturday that the sniper rested his rifle on the shoulder of one of the other SWAT team members as the team stood in the lobby of the bank.
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The video shows that given the number of SWAT team members present and the position of the sniper, it would have been difficult for the suspect to see that law enforcement was preparing to neutralize him.
The sniper shot through a computer monitor and struck the suspect in the center of the forehead, killing him instantly, police said.
The moment the sniper takes the shot, the suspect&#8217;s head is blurred in the video to spare viewers the graphic scene.
WATCH:
<blockquote class="twitter-tweet" data-media-max-width="560">
WATCH: Harrowing video shows moment sniper shoots through computer monitor and in between 2 hostages, taking out hostage-taker at Florida bank <a href="https://t.co/jt2anv3fo0">pic.twitter.com/jt2anv3fo0</a>
— Breaking911 (@Breaking911) <a href="https://twitter.com/Breaking911/status/1799912615176786151?ref_src=twsrc%5Etfw">June 9, 2024</a></blockquote>

Sniper

VIDEO: Florida Sniper Shoots Bank Robber Through Computer Monitor In Hostage Situation

Crime

Florida

U.S.

A new <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/How-Federal-Law-Enforcement-Commandeered-Financial-Institutions-to-Spy.pdf" target="_blank" rel="noopener">report</a> from the Select Subcommittee on the Weaponization of the Federal Government finds that federal law enforcement agencies asked major banks to monitor customers who oppose gun control and support strong border policies. The agencies equated these conservative views with potential “violent extremism.”
The investigation into the federal government’s surveillance of Americans’ financial activities <a href="https://judiciary.house.gov/media/in-the-news/house-gop-investigating-bank-america-voluntarily-giving-fbi-list-customers" target="_blank" rel="noopener">began</a> in May 2023, after House Republicans discovered that Bank of America had voluntarily turned customer data over to the feds in connection with the January 6, 2021 Capitol protests.
At that time, FBI whistleblowers alleged that BofA had given the agency records from a “huge list” of customers who were in Washington D.C. on or around that date or who used a debit or credit card to purchase a firearm around that time. The whistleblowers claimed these actions were taken was without warrants, probable cause, or any of the constitutional protections that would be typically required.
After a year-long investigation, the committee found that the FBI worked with not only BofA, but many other financial institutions like Barclays, U.S. Bank, Charles Schwab, HSBC, and PayPal who voluntarily shared private customer banking records “with federal law enforcement outside of normal legal process.” The feds were particularly interested in purchases from sporting goods stores like Cabela’s and Bass Pro Shops that sell firearms. The investigation also found that the FBI and other agencies flagged “Trump,” “MAGA,” “Bible” and other right-coded terms for banks to search in the transactions of customers who were not suspected of committing any crime. In one guidance, the agency said buying &#8220;religious texts&#8221; could be an indication of &#8220;extremism.&#8221;
Perhaps the most explosive revelation centers on an intelligence document titled “Domestic Violent Extremists Likely Emboldened in Aftermath of Capitol Breach” that the FBI, the Department of Homeland Security, and the National Counterterrorism Center shared with about 650 private financial institutions. In it, the agencies identify certain viewpoints they say could correspond with being a violent extremist. It includes opposition to gun control legislation, support for measures to control the border and crack down on illegal immigration, opposition to COVID-19 lockdowns and vaccine mandates, and a belief in the existence of a deep state. The agencies asked the financial institutions to search customer transaction records for evidence of these beliefs and share that data with them. They also created a secret portal for a select group of major banking institutions that allowed for ongoing backchannel information sharing.
<h4><a href="https://www.dailywire.com/podcasts/morning-wire/state-of-the-union-national-guard-in-ny-subway-3-8-24" target="_blank" rel="noopener">LISTEN: Hear the full report from the House Weaponization Hearing on Morning Wire</a></h4>
In essence, the subcommittee says that the FBI and other federal law enforcement agencies have weaponized financial institutions against conservatives. As the House report put it, “support for typical conservative policies…may result in an individual being labeled by the FBI as [domestic violence extremist] “Likely to Pose [an] Increasing Threat at Lawful Protests, Rallies, [and] Demonstrations.”
During a March 7 hearing related to these findings, subcommittee chair Jim Jordan (R-OH) said the message federal authorities are sending is “if you’ve got the wrong political beliefs, you’re potentially a domestic violent extremist.”
“We&#8217;ve seen the censorship, now we see what&#8217;s happening with big banks and big government relative to your financial data,” Jordan said. “Again, all this being done with no process, no warrant, no notification to the customer that the banks are actually supposed to serve. Big government&#8217;s not supposed to use big tech to censor Americans, and big government shouldn&#8217;t be working with big banks to target Americans for behavior that is legal and constitutional.”
In response to these revelations, Congresswoman Elise Stefanik (R-N.Y.) has introduced the “Protecting Privacy in Purchases Act.” The bill would ban banks and credit card companies from using a code to track gun purchases, something she says would create a “backdoor gun registry.”
However, the bill would not address the broader terms the FBI and other agencies were asking banks to search, and it is not yet clear how or if Republicans will respond to those issues legislatively.
Brian Knight, Senior Research Fellow at the Mercatus Center at George Mason University, said during the hearing the Weaponization Committee should be strategizing about how to protect Americans from unconstitutional financial data collecting at the bank-level. “I think that efforts to efforts to restrict the collection of data at the bank level are the best option we have currently,” he testified. “Because under current law, once the bank has that data, government has that data. So preventing the collection at the bank level is your first best option.”
Jordan Peterson, who is a Daily Wire personality, also testified at the March 7 hearing, warning that the practices the FBI and other federal agencies are currently involved in can quickly lead to a Chinese-style social credit system, where people with disfavored views find it very difficult to carry out financial transactions.
“This allows you purposefully to be shut out of all activities that can be virtualized,” he warned. “And in a rapidly virtualizing world, this increasingly means all activities. Driving, shopping, working, eating, finding shelter. Even fraternizing with friends and family. As merely being in the presence of someone with a low social credit score means that your own score can be lowered.”
He added that this is “precisely the payment system most desired by the most tyrannical.”
* * *
Listen to the full report on <a href="https://www.dailywire.com/podcasts/morning-wire/state-of-the-union-national-guard-in-ny-subway-3-8-24">Morning Wire</a>.

House Judiciary Holds Hearing Examining The Weaponization Of The Federal Government

Feds Equate Typical Conservative Views With ‘Violent Extremism’ In Financial Surveillance, House Weaponization Committee Finds

Feds Equate Typical Conservative Views With 'Violent Extremism' In Financial Surveillance, House Weaponization Committee Finds

Biden Administration

Conservatives

Jim Jordan

PayPal

Readers Pass

Surveillance

Weaponization

Saturday Night Live made headlines this weekend for all the wrong reasons. During Weekend Update, a cast member suggested that Donald Trump stumbled and introduced a “new term” to the debate called “de-banking.” What followed was a rather feeble attempt at mocking the former president.
In reality, de-banking is no laughing matter. It means losing essential financial services, like a bank account, payment processing, or even insurance, because of your views. And it is on the rise — so much so that the U.S. Supreme Court is set to hear arguments involving the issue this term.
Funny enough, the case originates in the Empire State (“Live from New York,” anybody?), where the National Rifle Association is challenging New York’s attempt to coerce banks and insurance companies to withdraw services from the group. The NRA alleges that the Department of Financial Services — at the behest of then-Governor Andrew Cuomo — used its vast power to regulate “reputational risk” along with back-channel meetings, public investigations, and threats of fines to punish the group for its Second Amendment advocacy. 
This is not an isolated incident. A string of religious ministries and conservative groups have also been <a href="https://www.viewpointdiversityscore.org/resources/instances-of-viewpoint-based-de-banking" target="_blank" rel="noopener">victimized</a> by de-banking. As Alliance Defending Freedom points out in a friend-of-the-court brief filed in support of the NRA’s position, pro-life group Heartbeat International was recently canceled by its insurance provider over its “anti-abortion” advocacy.
Likewise, Bank of America de-banked Indigenous Advance Ministries, an ADF client that serves impoverished Ugandan widows and orphans. The bank closed Indigenous Advance’s long-standing account as well as the account of a local church that donates to the ministry. The bank claimed it no longer wanted to serve their “business type” and that Indigenous Advance exceeded the “bank’s risk tolerance.”
It did this right before a planned mission trip to Uganda, sending Indigenous Advance scrambling to open new accounts and drastically reducing the funds for the trip. It couldn’t pay its Ugandan ministry partners — who live meal to meal — for several weeks. And it had to temporarily reduce aid to the impoverished people they serve.
Similar instances of de-banking abound. Former Brexit leader Nigel Farage’s high-profile case resulted in the <a href="https://www.reuters.com/business/finance/natwest-board-backs-ceo-alison-rose-over-farage-account-row-2023-07-25/" target="_blank" rel="noopener">ouster</a> of megabank NatWest’s CEO. Serial offender JPMorgan Chase’s <a href="https://www.wsj.com/articles/jpmorgan-targeted-by-republican-states-over-accusations-of-religious-bias-903c8b26?mod=Searchresults_pos1&amp;page=1" target="_blank" rel="noopener">hit list</a> includes the <a href="https://familycouncil.org/?p=25159" target="_blank" rel="noopener">Arkansas Family Council</a>, <a href="https://www.foxbusiness.com/politics/chase-bank-missouri-conservative-group" target="_blank" rel="noopener">Defense of Liberty</a>, and U.S Ambassador Sam Brownback&#8217;s <a href="https://www.newsweek.com/stop-troubling-trend-politically-motivated-debanking-opinion-1787639" target="_blank" rel="noopener">National Committee for Religious Freedom</a>.
<iframe loading="lazy" title="Weekend Update: Trump Ordered to Pay $83 Million, DeSantis Endorses Trump - SNL" width="500" height="281" src="https://www.youtube.com/embed/QLt6xK33mUc?start=133&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
There are many reasons for this phenomenon, but the root cause is vague terms of service. 
“Reputational” and “social” risk policies pervade financial institutions. Customers at all 28 commercial banks scored in Alliance Defending Freedom’s <a href="https://www.viewpointdiversityscore.org/business-index" target="_blank" rel="noopener">index</a> that measures corporate respect for free speech and religious freedom are currently vulnerable to de-banking.
Most alarmingly, 7 of the nation’s 10 largest commercial banks — including the top 3 — have “reputational risk” or “hate speech” policies. These policies’ overly broad and subjective language permit employees to discriminate based on a customer’s viewpoint and then hide their viewpoint-based actions behind opaque standards. They also allow abuse by government regulators.
A positive ruling in the NRA case — which, in a comedic twist that should provide fodder for SNL writers, is being argued by the ACLU — would affirm that the government cannot carry out its censorship schemes by co-opting third parties as censors. That would help. But that does not address the many de-banking decisions that can be laid at the feet of private actors.
The solution to this problem may lie with the states. This state legislative season presents an opportunity for states interested in protecting against politicized de-banking to act. Any such law should focus on the worst actors – the largest banks and payment processors. Thanks to wide-reaching government benefits, such as greater lending power, FDIC insurance rates, subsidies, bailouts, and an anticompetitive chartering system, these institutions dominate their markets over state-level competitors yet are responsible for the worst de-banking incidents.
At a minimum, the law should prohibit denial of services based on religious or political beliefs, give customers the right to ask for a detailed explanation when services are denied, empower the attorney general to enforce the statute, and provide aggrieved customers a private right of action.
No one should have to worry that they could lose their bank account, insurance coverage, or other essential financial services because of their religious or political views. Yet it’s clear that vague financial service policies abused by private and government actors pose a serious threat to everyone’s freedom of speech and religion.
So, an inadvertent thanks to our pals at SNL for bringing up de-banking. It’s about time we talked about it. And it’s about time for the law to require viewpoint neutrality from the biggest banks and payment processors.
* * *
Jeremy Tedesco is senior counsel and senior vice president of Corporate Engagement for <a href="http://www.adflegal.org/?utm_source=wallstreetjournal&amp;utm_medium=oped" target="_blank" rel="noopener">Alliance Defending Freedom</a> (<a href="https://twitter.com/ADFLegal">@ADFLegal</a>).
The views expressed in this piece are those of the author and do not necessarily represent those of the Daily Wire.

SNL’s Colin Jost on Weekend Update

SNL’s Trump ‘De-Banking’ Gaff Accidentally Elevates Hot Button Issue

SNL’s Trump 'De-Banking' Gaff Accidentally Elevates Hot Button Issue 

Alliance Defending Freedom (ADF)

Christians

Donald Trump

Saturday Night Live

More than 60 branches of major banks filed to close in just one week this month, the latest in a growing trend of banks shuttering physical locations.
A total of 64 branches filed to close branches between November 12 and 18, according to data from the U.S. Office of the Comptroller of the Currency, ZeroHedge <a href="https://www.zerohedge.com/personal-finance/64-us-bank-branches-file-shut-down-single-week-are-you-affected" target="_blank" rel="noopener">reported</a>.
The bank with the most closures was PNC Bank, the country&#8217;s sixth largest, which has been working on cutting costs lately.
PNC filed to shut down 19 branches across eight states, including five in Pennsylvania, four in Illinois, and locations in Texas, Alabama, New Jersey, Indiana, Ohio, and Florida.
During PNC&#8217;s second quarter earnings call, CEO William Demchak said the bank is “going to have to take a hard look&#8221; at where it can &#8220;generate savings &#8230; without cutting the potential for growth.”
Last month, PNC also said it was cutting 4% of its workforce. The bank has already shut down dozens of branches this year and is aiming for $725 million in expense cuts next year.
One factor driving the branch closures is the rise of online banking. During the pandemic, the number of bank branches shutting down <a href="https://ncrc.org/the-great-consolidation-of-banks-and-acceleration-of-branch-closures-across-america/" target="_blank" rel="noopener">doubled</a> as more people stayed at home and banked through their bank&#8217;s website or banking app.
Between 2017 and 2021, about 7,500 bank branches, or 9% of all brick-and-mortar locations shut down, <a href="https://ncrc.org/the-great-consolidation-of-banks-and-acceleration-of-branch-closures-across-america/" target="_blank" rel="noopener">according</a> to a report from the National Community Reinvestment Coalition.
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Last year alone, a net of 2,054 bank branches closed, <a href="https://www.zerohedge.com/personal-finance/64-us-bank-branches-file-shut-down-single-week-are-you-affected" target="_blank" rel="noopener">according</a> to data from S&amp;P.
Although closing physical banking locations may save banks money, they have also created banking deserts for customers or areas where the closest bank is many miles away. This can cause a litany of other unintended effects, such as a decline in small business lending, as well as the area losing an employer and commercial tenant.
Also, when there are fewer branches in the area, more people use &#8220;alternative financial services that open them to unregulated and predatory financial practices,&#8221; a report from the National Community Reinvestment Coalition <a href="https://www.zerohedge.com/personal-finance/64-us-bank-branches-file-shut-down-single-week-are-you-affected" target="_blank" rel="noopener">said</a>.
PNC&#8217;s closures are expected to result in 60% of its banking business being online.
JPMorgan Chase was the bank with the second most branch closure filings during the week of November 12. The bank filed to shutter 18 branches in 14 states including New York, Ohio, and Connecticut.
Citizens Bank filed to close eight branches, including six branch closures in New York.
U.S. Bank filed to shutter seven locations including three in Tennessee.
Bank of America filed to close five locations including two in New York, and one each in Texas, Massachusetts, and California.
Citibank filed to shut down two branches.
Several other banks filed to shut down one branch each, including Sterling, Bremer, First National Bank of Hughes Springs, Windsor Federal Savings &amp; Loan Association, and Aroostook County Federal Savings &amp; Loan Association.

PNC Bank Branch Locations Ahead Of Earning Figures

Over 60 U.S. Bank Branches File To Shutter In One Week

Economy

Money

House Judiciary Chairman <a href="https://www.dailywire.com/topic/jim-jordan" target="_blank" rel="noopener">Jim Jordan</a> (R-OH) subpoenaed <a href="https://www.dailywire.com/topic/bank-of-america" target="_blank" rel="noopener">Bank of America</a> this week over lawmakers&#8217; investigation into the sharing of private financial data with the FBI related to the January 6 riot.
In a <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/cover-letter.pdf" target="_blank" rel="noopener">letter</a> to BoA CEO Brian Moynihan, Jordan said that the bank had not yet provided lawmakers on the Select Subcommittee on the Weaponization of the Federal Government with all the necessary communications and documents they had requested.
Specifically, Jordan said the bank had not turned over a “filing” that it had sent to the FBI after the agency requested financial data from individuals who had been in the Washington, D.C., area around January 6, 2021.
Jordan said that the BoA gave the FBI a list of all individuals who had made purchases in the D.C. area around January 6 “without any legal process.”
“Documents obtained by the Committee and Select Subcommittee show that the FBI also provided BoA with specific search query terms, indicating that the FBI was ‘interested in all financial relationships’ of BoA customers transacting in Washington D.C. and that had made ‘ANY historical purchase’ of a firearm, or those who had purchased a hotel, Airbnb, or airline travel within a given date range,” Jordan said.
The bank has said that it handed over the information in a legal process that was begun by the Department of Treasury. Jordan said the records the committee had so far viewed indicated that the FBI was the agency that reached out, not the Treasury Department.
“As a result, it is unclear what ‘legal’ process permits the FBI or BoA to share the sensitive customer information of potentially thousands of BoA customers and implicate them in a federal law enforcement investigation without any clear criminal nexus,&#8221; he wrote.
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Jordan said that if the FBI did have such authority, then Congress would need to act to protect Americans’ financial privacy.
“It should not be the case that federal law enforcement has carte blanche access to Americans’ financial information by deeming a transaction or class of transactions as &#8216;suspicious&#8217; or otherwise,” he said.
The probe into the BoA’s cooperation with the FBI is just one aspect of House Republicans&#8217; investigation into the politicization of federal government agencies. The committee has also looked at governmental pressure to censor information on social media.
RELATED: <a href="https://www.dailywire.com/news/the-fbi-dropped-probe-of-pedophile-to-focus-on-january-6-now-hes-accused-of-abusing-10-year-old-boy" target="_blank" rel="noopener">The FBI Halted Probe Of Pedophile To Focus On January 6. Now He’s Accused Of Abusing A 10-Year-Old Boy.</a>

U.S.-WASHINGTON, D.C.-HOUSE-SPEAKER-ELECTION-THIRD VOTE-FAILURE

Jordan Subpoenas Bank Of America For ‘Sharing’ Private Financial Data With FBI

Jordan Subpoenas Bank Of America For 'Sharing' Private Financial Data With FBI

Congress

January 6

Politics

Disney, NASCAR, and Kohl’s are among the companies under scrutiny for their financial support of the Trevor Project, a pro-LGBT organization that critics say enables sexual predators. 
The “<a href="https://consumersresearch.org/woke-alert/woke-alert-disney-bank-of-america-nascar-chipotle-kohls-gm/" target="_blank" rel="noopener">woke alert</a>” flagging the corporations’ support of the Trevor Project was issued by <a href="https://consumersresearch.org/" target="_blank" rel="noopener">Consumers’ Research</a>, a nonprofit organization that <a href="https://consumersresearch.org/history/" target="_blank" rel="noopener">seeks to</a> “educate and protect consumers.”
“These six corporations are among those <a href="https://www.thetrevorproject.org/corporate-partners/" target="_blank" rel="noopener">funneling millions of dollars</a> to the <a href="https://nypost.com/2022/09/01/mom-discovers-depravity-in-trevor-projects-trans-chat-room/" target="_blank" rel="noopener">Trevor Project,</a> an organization that hosts a <a href="https://www.thetrevorproject.org/visit-trevorspace/" target="_blank" rel="noopener">private chat room</a> in which adults prey on vulnerable children,” the alert from Consumers’ Research says. 
Bank of America, Chipotle, and General Motors were also identified in the alert, which was intended to “highlight another disturbing example of Woke Capitalism.”
The &#8220;woke alert&#8221; notes that Kohl&#8217;s supports the group with its <a href="https://www.kohls.com/catalog.jsp?CN=Assortment:Pride&amp;cc=di-TN2.0-S-pride" target="_blank" rel="noopener">&#8220;Trevor Project specific pride collection.&#8221;</a> Kohl&#8217;s also made a <a href="https://www.kohls.com/catalog.jsp?CN=Assortment:Pride&amp;cc=di-TN2.0-S-pride" target="_blank" rel="noopener">$100,000 donation</a> to the organization. Chipotle also supported the organization with a &#8220;<a href="https://chipotlegoods.com" target="_blank" rel="noopener">pride line of merchandise</a>.&#8221; The company pledged a minimum of $15,000 to the Trevor Project.
The alert, which provides consumers with ways to reach out to the companies, specifically focused on the organization’s “TrevorSpace,” an online, anonymous chat platform for children as young as 13. 
The website does not utilize age verification and “provides a way for groomers and predators to communicate directly with children without their parents’ knowledge or consent,” Consumers’ Research claims.
Screenshots <a href="https://nypost.com/2022/09/01/mom-discovers-depravity-in-trevor-projects-trans-chat-room/" target="_blank" rel="noopener">reported</a> by the New York Post and included in the alert show discussions of pornography, masturbation, and fetishes on the site. The Post <a href="https://nypost.com/2022/09/01/mom-discovers-depravity-in-trevor-projects-trans-chat-room/" target="_blank" rel="noopener">described</a> the website as a “‘Pandora’s box’ of sexually perverse content, aggressive gender-reassignment referrals, adults encouraging minors to hide their transitions from their parents and many troubled kids in need of psychological counseling.” 
The Trevor Project was <a href="https://decider.com/2022/06/24/trevor-1994-short-film-watch-online/" target="_blank" rel="noopener">named after</a> a <a href="https://www.youtube.com/watch?v=1geRc8LaZfs" target="_blank" rel="noopener">short film</a> produced by the organization’s founders called “Trevor,” which centers around a gay teen who attempts suicide. The organization states that its mission is “to end suicide among LGBTQ young people.”
However, January Littlejohn, a parent advocate with <a href="https://donoharmmedicine.org/" target="_blank" rel="noopener">Do No Harm</a>, argues, &#8220;The Trevor Project has strayed far from their noble beginning as an organization dedicated to preventing suicide amongst vulnerable youth” and is “no longer a safe place for children or teens.&#8221; 
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“Companies donating to this organization need to understand what they are actually supporting, which is the teaching of radical gender ideology, the false notion that a child can be born into the wrong body, onto impressionable children,” Littlejohn added. 
“The Trevor Project fosters a predatory and unsafe environment for minors. The fact that they have features in place that encourage children to hide their search and chatroom activity from their parents is deeply alarming,” Consumers’ Research Executive Director Will Hild alleged. 
He added, “Companies like Disney, General Motors, and Bank of America should not be funding online chatrooms where predatory adults have unfettered access to groom vulnerable children.”
None of the six corporations, nor the Trevor Project, responded to a request for comment.
(Disclosure: The Daily Wire has <a href="https://www.dailywire.com/videos/introducing-dw-kids">announced plans</a> for kids entertainment content.)
The National Suicide Prevention Lifeline is a free hotline for individuals in crisis or distress or for those looking to help someone else. It is available 24/7 at 1-800-273-8255.

Phone in the dark

‘Woke Alert:’ Disney, Kohl’s Blasted For Support Of LGBT Group Hosting Anonymous Chats For Teens

Disney, Kohl's Blasted For Support Of LGBT Group Hosting Anonymous Chats For Teens

Children

Chipotle

Disney

General Motors

Kohl's

LGBT

NASCAR

Social Issues

Suicide

Transgender

North Carolina Republican <a href="https://www.dailywire.com/news/rep-dan-bishop-speaker-fight-helps-republicans-advance-the-ball-gop-majority-must-show-will-on-behalf-of-the-voters" target="_blank" rel="noopener">Dan Bishop</a> said this week that the <a href="https://www.dailywire.com/topic/bank-of-america" target="_blank" rel="noopener">Bank of America</a> provided the <a href="https://www.dailywire.com/topic/fbi" target="_blank" rel="noopener">FBI</a> with private financial information about anyone who was in Washington, D.C., from January 5-7, 2021. 
Bishop, a member of the Judiciary Select Subcommittee on the Weaponization of the Federal Government, said that the federal government had widely victimized Americans through widespread surveillance, even those not accused of any wrongdoing on January 6. 
“Bank of America gave a list to the FBI of anyone who used BofA credit/debit cards in the DC area between Jan 5-7th, 2021 — regardless of whether they participated in the events of Jan. 6th,” he said on Twitter. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Bank of America gave a list to the FBI of anyone who used BofA credit/debit cards in the DC area between Jan 5-7th, 2021 &#8211; regardless of whether they participated in the events of Jan. 6th. <a href="https://t.co/C0zBA1AGmy">pic.twitter.com/C0zBA1AGmy</a>
&mdash; Rep. Dan Bishop (@RepDanBishop) <a href="https://twitter.com/RepDanBishop/status/1659265209725329427?ref_src=twsrc%5Etfw">May 18, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
During remarks at a hearing of the committee on Thursday, the North Carolina Republican referenced whistleblower testimony that the bank had voluntarily turned over credit card transactions for anyone who was in the D.C. area around January 6. 
“There are victims all over the place, all of the people who suffered when the FBI and the Department of Homeland Security got involved in censorship with social media platforms, millions and millions of tweets and narratives being taken down, that is victimization at scale,” Bishop said. 
The whistleblower’s claims were highlighted in a <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/2023-05-17-fbi-whistleblower-testimony-highlights-government-abuse-misallocation-of-resources-and-retaliation-sm.pdf" target="_blank" rel="noopener">report</a> from the weaponization committee that characterized the testimony as “highly alarming.”
“The FBI seemingly worked with a major financial institution to receive, without legal process, financial records about Americans who used credit or debit cards to purchase hotels, flights, or firearms in close proximity to January 6, 2021. This invasion of the privacy of American citizens in this manner is decidedly concerning,” the report <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/2023-05-17-fbi-whistleblower-testimony-highlights-government-abuse-misallocation-of-resources-and-retaliation-sm.pdf">said</a>. 
Other Republicans backed up Bishop, calling for more protections for the liberty of Americans, with Rep. Matt Gaetz (R-FL) referring to the Bank of America’s “astonishing conduct.” 
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“Financial privacy is a cornerstone of individual liberty,” West Virginia State Treasurer Riley Moore said. “Big banks and big government colluding to violate the privacy of American citizens without a warrant is dangerous and unacceptable.”
In response to the allegations, Bank of America <a href="https://abc3340.com/news/nation-world/whistleblowers-claim-fbi-wrongfully-targeted-gun-owners-concerned-parents-marcus-allen-garret-oboyle-and-stephen-friend-weaponization-committee" target="_blank" rel="noopener">said</a> that it, “follows all applicable laws and regulatory requirements to receive, evaluate, process, safeguard and narrowly respond to law enforcement requests.”
On Friday, Bishop <a href="https://twitter.com/RepDanBishop/status/1659614327773511701" target="_blank" rel="noopener">said</a> that the FBI was “rotten to the core” in response to another report that the FBI had wrongly accessed data for hundreds of thousands of Americans. 
“Rotten to the core. It’s far past time to cut their budget and institute significant reforms. The weaponization of the federal government must end,” Bishop said.

Weaponization of the Federal Government Hearing

Republican Rep. Says Major Bank Gave Private Financial Data To FBI For Anyone In D.C. Around Jan 6

Matt Gaetz

North Carolina

Washington D.C.

Veteran <a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">bank</a> executives are meeting with senior lawmakers and federal officials as the government comes within two weeks of a potential <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">debt</a> default.
The <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined national debt limit of $31.4 trillion, exceeded the threshold earlier this year. Treasury Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> said in a <a href="https://home.treasury.gov/news/press-releases/jy1483" target="_blank" rel="noopener">letter</a> that her agency expects to default on obligations as early as the first day of June unless the debt limit is amended.
Senate Majority Leader <a href="http://dailywire.com/topic/chuck-schumer" target="_blank" rel="noopener">Chuck Schumer</a> (D-NY) hosted a meeting with JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser on Wednesday morning, according to a <a href="https://www.bloomberg.com/news/articles/2023-05-17/dimon-fraser-other-bank-ceos-to-meet-schumer-on-debt-limit#xj4y7vzkg" target="_blank" rel="noopener">report</a> from Bloomberg. Dimon informed the outlet that his financial institution created a “war room” that will monitor contingencies should lawmakers fail to make a deal to increase the debt limit.
“I asked them to make sure that they tell everybody that default should not be an option,” Schumer told journalists after the meeting with Dimon and Fraser, according to a <a href="https://www.cnn.com/2023/05/17/business/bank-ceos-schumer-debt-ceiling/index.html" target="_blank" rel="noopener">report</a> from CNN. An unnamed source told the outlet that the conversation between Schumer and the executives was “frank,” noting that the lawmaker prompted them to ask every member of Congress to explicitly commit themselves to avoid a default.
A default would likely induce a recession as the federal government, a major borrower of funds that investors around the world generally consider to be reliable, neglects to repay obligations.
The national debt, which now surpasses $31.7 trillion, nevertheless offers persistent financial risk and functions as a damper on long-term economic growth. Elevated interest rates on the national debt have <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget in recent months as lawmakers are forced to allocate more tax revenue toward servicing the obligations rather than funding federal programs.
The executives are currently in the nation’s capital for an annual Bank Policy Institute summit. Yellen is scheduled to meet with the two executives, as well as Bank of America CEO Brian Moynihan, on Thursday afternoon.
The meeting with Schumer comes one day after President Joe Biden and House Speaker Kevin McCarthy (R-CA) held talks to <a href="https://www.dailywire.com/news/biden-and-mccarthy-make-progress-after-latest-debt-ceiling-talks" target="_blank" rel="noopener">discuss</a> possible mechanisms to raise the debt limit. Republicans desire to link a temporary increase in the debt ceiling with spending limits, while Democrats say they prefer separate processes for debt limit negotiations and budget reforms.
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The White House said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/16/readout-of-president-bidens-meeting-with-congressional-leadership-on-preventing-default/" target="_blank" rel="noopener">readout</a> that the meeting was “productive and direct,” while McCarthy said in his own <a href="https://www.speaker.gov/speaker-mccarthys-reaction-to-todays-meeting-with-the-president/" target="_blank" rel="noopener">remarks</a> that “it is possible to get a deal by the end of the week.”
Schumer, Dimon, and Fraser also discussed the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, the latter of which JPMorgan Chase <a href="https://www.dailywire.com/news/jpmorgan-chase-the-nations-largest-bank-acquires-first-republic-bank-after-government-takeover" target="_blank" rel="noopener">acquired</a> in a deal brokered by federal regulators. Dimon insisted to reporters that “regional banks are strong.”
The implosion of the three medium-sized banks, where the vast majority of account balances exceeded the $250,000 threshold guaranteed by the Federal Deposit Insurance Corporation, prompted the government-backed company to <a href="https://www.dailywire.com/news/financial-authorities-announce-buyer-for-collapsed-silicon-valley-bank" target="_blank" rel="noopener">secure</a> insured and uninsured accounts at the first two financial institutions in early March to prevent further bank runs. Other regional banks, such as PacWest and Western Alliance, have witnessed significant <a href="https://www.dailywire.com/news/regional-bank-stock-plummets-after-company-reveals-deposits-dropped-again" target="_blank" rel="noopener">turmoil</a> in the stock market and increased withdrawal levels in recent weeks.

Jamie Dimon

Major Bank Sets Up ‘War Room’ As Nation Approaches Debt Default

Major Bank Executives Meet With Democrats As Nation Approaches Debt Default

Chuck Schumer

Debt Ceiling

Janet Yellen

National Debt

Large <a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">financial institutions</a> will provide First Republic Bank with $30 billion in deposits as the company witnesses pressure from customers who desire to withdraw funds.
Wells Fargo, <a href="https://www.dailywire.com/topic/jp-morgan" target="_blank" rel="noopener">JPMorgan Chase</a>, <a href="https://www.dailywire.com/topic/bank-of-america" target="_blank" rel="noopener">Bank of America</a>, and <a href="https://www.dailywire.com/topic/citigroup" target="_blank" rel="noopener">Citigroup</a> will each contribute $5 billion of deposits to assist First Republic Bank, which is heavily involved in wealth management and has many customers with deposits exceeding the $250,000 threshold protected by the Federal Deposit Insurance Corporation, according to a Thursday <a href="https://www.bloomberg.com/news/articles/2023-03-16/first-republic-to-get-30-billion-of-bank-deposits-in-rescue?utm_campaign=socialflow-organic&amp;utm_source=twitter&amp;cmpid=socialflow-twitter-business&amp;utm_medium=social&amp;utm_content=business" target="_blank" rel="noopener">report</a> from Bloomberg. Officials from the federal government enabled the deal, details of which circulated across agencies and financial institutions on Thursday ahead of the announcement.
Goldman Sachs and Morgan Stanley will each contribute $2.5 billion, while PNC Bank, Truist Financial, BNY Mellon, U.S. Bancorp, and State Street will each contribute $1 billion. First Republic Bank previously considered a sale and has been working with JPMorgan Chase to contend with its current difficulties.
Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, FDIC Chairman Martin Gruenberg, and Acting Comptroller of the Currency Michael Hsu said in a <a href="https://www.fdic.gov/news/press-releases/2023/pr23020.html" target="_blank" rel="noopener">statement</a> that the &#8220;show of support&#8221; is &#8220;most welcome&#8221; and &#8220;demonstrates the resilience of the banking system.&#8221;
Shares of First Republic Bank declined nearly 73% between March 8 and March 13, the time horizon over which Silicon Valley Bank and Signature Bank were shuttered by the FDIC. Prices for First Republic Bank rose more than 10% on Thursday amid the deposit assistance discussions.
First Republic Bank maintains $271 billion in assets, an amount comparable to the $212 billion maintained by Silicon Valley Bank and the $110 billion maintained by Signature Bank. JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo respectively control $3.7 trillion, $3.1 trillion, $2.4 trillion, and $1.9 trillion; some have noted that the recent collapse of smaller banks could spur consolidation in the financial services sector.
Silicon Valley Bank announced a $1.75 billion share sale last week after the company <a href="https://www.dailywire.com/news/regulators-shut-down-major-tech-bank-after-run-on-savings" target="_blank" rel="noopener">suffered</a> heavy losses from the liquidation of long-term assets in a $21 billion bond portfolio, raising concerns among venture capital firms and startups with ties to the company about the safety of their deposits. The portfolio had declined in value due to the higher economy-wide interest rate environment caused by actions from the Federal Reserve to decrease inflation.
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The vast majority of deposits at Silicon Valley Bank, which offered services to nearly half of the venture-backed technology and healthcare firms in the United States, exceeded the $250,000 threshold typically insured by the FDIC. Regulators scrambled to guarantee all deposits at Silicon Valley Bank such that the remainder of the financial system, in which roughly half of deposits surpass $250,000, would remain protected from the possibility of bank runs.
Yellen asserted before members of the Senate Finance Committee on Thursday that her agency, the Federal Reserve, and the FDIC successfully <a href="https://www.dailywire.com/news/yellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse" target="_blank" rel="noopener">protected</a> the deposits of affected banks. “I can reassure the members of the Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them,” she commented. “This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe.”
Some lawmakers cautioned of moral hazard arising from efforts to insure deposits both above and below the $250,000 threshold. “I am concerned about the precedent of guaranteeing all deposits and the market expectation moving forward,” Senate Finance Committee Ranking Member Mike Crapo (R-ID) told Yellen, noting that “rising interest rates” induced by Federal Reserve efforts to combat inflation are “impacting household budgets, the federal government’s coffers, and, as we saw this week, our banking system.”

First Republic Bank

Big Banks Rescue Collapsing First Republic Bank With $30 Billion Deal

Large Banks Will Save Collapsing First Republic Bank With $30 Billion Deal

Silicon Valley Bank

<a href="https://www.dailywire.com/topic/bank-of-america" target="_blank" rel="noopener">Bank of America</a> CEO Brian Moynihan is on the shortlist to succeed <a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury</a> Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a>, according to a <a href="https://www.foxbusiness.com/politics/brian-moynihan-added-short-list-replace-yellen-treasury" target="_blank" rel="noopener">report</a> from Fox Business.
Multiple sources told the outlet the longtime investment banker joined Commerce Secretary Gina Raimondo and Securities and Exchange Commission Chair Gary Gensler on the list of potential candidates to take over the challenging role of managing the federal government’s finances.
Bank of America executive Lawrence DiRita, who manages the company’s public affairs, declined comment but would not deny the speculation regarding Moynihan, according to Fox Business. A spokesman for the White House also declined comment, while White House Press Secretary Karine Jean-Pierre <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2022/12/09/press-briefing-by-press-secretary-karine-jean-pierre-december-9-2022/" target="_blank" rel="noopener">said</a> on Friday that the report “seems to be pure speculation.”
Moynihan previously worked as chief executive of Merrill Lynch before the company was sold to Bank of America in 2008; he became the second-largest American financial institution’s chief executive two years later. Fox Business notes that Moynihan has been attending state dinners and accepting <a href="https://www.foxbusiness.com/economy/bank-of-america-ceo-predicts-shallow-recession-us-consumer-resilient" target="_blank" rel="noopener">media interviews</a> in which he advances the optimistic economic outlook maintained by the White House.
An earlier <a href="https://www.axios.com/2022/09/28/janet-yellen-treasury-midterms-shuffle" target="_blank" rel="noopener">report</a> from Axios found that Yellen and other officials could resign after the midterm elections. One concern that might have prevented Yellen’s exit was finding a replacement that could be approved by the Senate; however, a lackluster Republican performance has guaranteed that the upper chamber will remain in Democratic hands. The report added that Brian Deese, the director of the National Economic Council, and Cecilia Rouse, the chair of the Council of Economic Advisers, could depart early next year.
Yellen, who formerly led the Federal Reserve, has so far <a href="https://www.youtube.com/watch?v=hWf-WiQ0ZWE" target="_blank" rel="noopener">denied</a> the rumor of her upcoming exit from the administration. “There is no truth to that,” she recently told MSNBC anchor and Washington Post columnist Jonathan Capehart.
The 76-year-old economist has been the subject of criticism over the past two years for downplaying the impact that record inflation would have on the economy. By the end of last year, Yellen began <a href="https://www.dailywire.com/news/janet-yellen-admits-inflation-shouldnt-be-labeled-transitory" target="_blank" rel="noopener">pivoting</a> away from the term “transitory” as a reliable descriptor for rising price levels.
“I am ready to retire the word transitory,” she said. “I can agree that that hasn’t been an apt description of what we are dealing with.”
Earlier this year, she <a href="https://www.dailywire.com/news/janet-yellen-admits-she-was-wrong-about-inflation-being-small-risk" target="_blank" rel="noopener">told</a> CNN host Wolf Blitzer that she was “wrong then about the path that inflation would take,” acknowledging that “there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly.”
The White House has also been criticized for arguing that the economy <a href="https://www.dailywire.com/news/white-house-does-preemptive-damage-control-as-economy-heads-toward-recession" target="_blank" rel="noopener">never entered</a> a recession, even though the rule-of-thumb definition, two conservative quarters of negative growth, was satisfied in the first half of this year. Administration officials have claimed that only an official determination from the National Bureau of Economic Research would mean the nation was in a prolonged contraction.
In one set of particularly eyebrow-raising comments, Yellen <a href="https://www.dailywire.com/news/yellen-were-not-in-a-recession-were-in-a-transition-in-which-growth-is-slowing" target="_blank" rel="noopener">asserted</a> that the nation was not in a recession but rather a “period of transition in which growth is slowing.”

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Treasury Department

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