Why woke [Unqualified & gay...] 'Frisco Fed chief missed Silicon Valley Bank's warning signs

[Leroy N. Soetoro]

<https://nypost.com/2023/03/17/why-woke-frisco-fed-chief-missed-silicon-
valley-banks-warning-signs/>

Wokeness has replaced competence and merit across the banking sector, and
San Francisco Fed Chief Mary Daly is the poster child of this pernicious
trend.

A protege of Treasury Secretary Janet Yellen and short-list candidate for
Federal Reserve vice chair, Daly was supposed to be supervising Silicon
Valley Bank but apparently was too busy playing politics and pushing woke
agendas to regulate rogue banks like SVB, the second-biggest bank failure
on record.

Daly had other priorities, including climate change, George Floyd and
Black Lives Matter, inequities between blacks and whites, LGBTQ+ rights
and a host of other woke social-justice issues that had nothing to do with
banking and finance.

Daly’s Fed bio gushes she’s committed to “understanding the economic and
financial risks of climate change and inequities.” Never mind the more
existential threat of banks in her jurisdiction amassing mortgage bonds
with longer maturities that exposed investors to greater interest-rate
risk.

In a recent LinkedIn post, Daly appeared sidetracked by racial justice,
writing: “What Black voices have I lifted up? Equity & inclusion begins
with me. #GeorgeFloyd.” She also posted selfies with local Black Lives
Matter activists.

Meanwhile, Daly missed all the warning signs of runaway inflation, which
led to the steep interest-rate hikes that made SVB’s investments
worthless.

In 2021, she said, “I am not thinking that we have unwanted inflation
around the corner. I don’t think that’s a risk.”

Early last year, moreover, Daly denied the economy was suffering from
painful inflation: “That’s not what I see.” She also didn’t see the need
for hiking interest rates.

Then in August, she said inflation didn’t affect her personally, so what’s
the big deal? “I don’t feel the pain of inflation anymore,” Daly told
Reuters.

“I’m not immune to gas prices rising, food prices rising,” she added. “But
I don’t find myself in a space where I have to make trade-offs, because I
have enough, and many, many Americans have enough.”

Easy for her to say: She pulls down more than $422,000 a year.

From her policy papers, speeches and interviews, it’s clear that Daly
thinks the Fed’s core mission isn’t controlling inflation but achieving
full employment — and raising interest rates just hurts that goal. Her
agenda is more jobs and higher wages for minorities, so sound money is not
a priority for her — even though inflation is a huge tax on the working
class and especially minorities.

Until recently, Daly was opposed to the Fed’s hawkish shift to tightening
credit to fight inflation. Her bank examiners no doubt shared her dovish
mindset and didn’t anticipate rates increasing, which may also explain why
alarms weren’t raised at SVB.

Daly has no background in banking or managing risk. After dropping out of
high school, she worked in a donut shop before eventually getting her GED
and entering college, where she became enamored with a socialist
professor.

She said she was inspired by Marxian economist Gene Wagner, who “has
mentored me my whole life.”

Several years later, after earning a PhD from Syracuse University, Daly
landed a job as a labor inequality researcher at the San Francisco Fed,
where she ingratiated herself with then-SF Fed President Janet Yellen, who
helped her fail upward.

Daly called Yellen an “important mentor in my life . . . [S]he made my
career kind of explode.” Daly quickly rose up the ranks, and in 2018, she
was named president and CEO of the SF Fed — but more important to the
wokesters, she was the “first openly gay” regional Fed bank chief.

Another Daly cheerleader was Greg Becker, the chief executive who presided
over collapsed SVB. Until his Friday ouster, he conveniently also sat on
SF Fed’s board. It was one big happy woke family.

SVB’s board is packed with Trump-hating Hillary, Biden and Obama donors
obsessed with “equity and diversity.” One director, Elizabeth “Busy” Burr,
argued for hiring underrepresented “people of color” in banking to counter
“four years of a president who unleashed a tide of racism and white
supremacy.”

“It’s not enough to just report the numbers,” she said. “Instead, we need
to demand a deep look at company culture.”

While they were busy looking at company culture, the equally woke SF Fed
failed to notice SVB making risky bets on long-term mortgage bonds, even
as Federal Reserve Chair Jerome Powell was telegraphing his intent to jack
up interest rates in 75-basis-point increments.

Is Daly being blamed for not seeing the warning signs? Of course not. Daly
has made President Biden’s short list to fill the open vice chair seat on
the Federal Reserve Board.
Biden, as usual, blames his predecessor Donald Trump for the collapse of
SVB. But he should look no further than Daly, the social activist posing
as a bank regulator. Who’s regulating the regulators?

Paul Sperry is former Washington bureau chief for Investor’s Business
Daily and author of “The Great American Bank Robbery.”

Twitter: @paulsperry_

Comments:

We, the people
17 March, 2023

Before Alan Greenspan, the Fed never got near politics. It's ranks were
filled with phDs, MBAs, statisticians, and (shocking) BANKERS!

Bill Clinton was the first president that made the Fed Chairman a VIP at
the White House after realizing that in the age of CNBS, Bloomberg radio,
and Fox Business, the Fed suddenly became very powerful and would be a
useful political tool. Clinton also famously pressured Greenspan into
keeping rates low before his reelection because raising interest rates
might slow down the economy and hurt his chances for reelection.


--
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recover with no after effects.

No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.

Donald J. Trump, cheated out of a second term by fraudulent "mail-in"
ballots. Report voter fraud: sf.n...@mail.house.gov

Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.

Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.

President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.