GOP House Oversight chairman James Comer criticizes Silicon Valley Bank as 'one of the most woke banks'
- James Comer attributed Silicon Valley Bank's failure to its "woke" ESG investments.
- "This could be a trend and there are consequences for bad Democrat policy," Comer said on Sunday.
GOP Rep. James Comer, the chairman of the House Oversight Committee, slammed Silicon Valley Bank, or SVB, as "one of the most woke banks" in the US.
"We see now coming out they were one of the most woke banks in their quest for the ESG-type policy and investing," Comer said, referring to environmental, social, and governance policies.
"This could be a trend and there are consequences for bad Democrat policy," the Kentucky congressman continued on Sunday's episode of Fox News' "Sunday Morning Futures."
Comer did not explain which environmental sustainability-linked investments would have caused SVB's failure, or how they would have done so.
The word "woke" points to an awareness of how some systems can be unjust, but it has also been used by right-wing figures as a catch-all term for progressive policies.
SVB did invest in cleantech and environmental sustainability.
"We serve those creating positive environmental change," the bank said on its website. "From alternative energy solutions to agricultural breakthroughs, we support individuals and businesses driving toward a healthier planet."
SVB is far from the only financial institution to have put money into sustainable investing. ESG investments and green stocks saw a boom back in 2021. As of 2021, $18.4 trillion had been invested in ESG-related assets, per an October 2022 report by PwC. But conservative lawmakers have railed against ESG investments, calling it "woke capitalism."
And while Comer cited "bad Democrat policy" in SVB's failure, some Democratic figures have blamed Trump-era policies for the bank run. On Sunday, Democratic Sen. Bernie Sanders said a 2018 law signed by former President Donald Trump is "directly" responsible for the collapse of Silicon Valley Bank. The law rolled back restrictions around smaller banks like SVB, and did not subject them to the same scrutiny that large financial institutions have to comply with.
Silicon Valley Bank's clients started running for the exits after the bank's management sold $21 billion worth of bonds at a $1.8 billion loss. The Federal Deposit Insurance Corporation, or FDIC, shut down the bank on Friday. It has become the biggest bank failure in the US since the 2008 financial crisis.
In a statement on Sunday, the US Treasury, Federal Reserve Board, and the FDIC announced all depositors would be fully protected and would have access to all their money starting Monday.
Representatives for Comer and Silicon Valley Bank did not immediately respond to Insider's requests for comment sent outside regular business hours.