Silicon Valley Bank had no official chief risk officer ahead of collapse but employed DEI executive

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Silicon Valley Bank (SVB) did not have a chief risk officer for the last eight months of 2022 as it headed for collapse – even though it hired a chief diversity officer in the same period.

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Laura Izurieta, SVB’s chief risk officer, has reached an agreement with the bank to move into a non-executive role at the end of April 2022, as she exits the company. according to forbes,

From April 29 through the end of the year, the bank navigated without a chief risk officer through rising interest rates and a slowing economy, until the company announced the hiring of Kim Olsson to that role on January 4, 2023. Didn’t

from April 2022 until the bank got stuck under liquidity crunch and was taken over by regulators last week, Silicon Valley Bank in action Angela Morris Lovelace as its Chief Diversity, Equity and Inclusion (DEI) Officer.

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It is unclear who will take over Izurieta’s duties for the last eight months of 2022. Silicon Valley Bank did not respond to a request for comment from Fox Business; Federal Deposit Insurance Corporation and federal Reserve declined to comment.

Bloomberg reported this week That the bank lack a chief risk officer for most of 2022 is part of a Federal Reserve investigation into the bank’s collapse.

Sen. Kennedy says SVB bailout was avoidable: ‘Bone-deep, down-to-the-marrow stupid’

A chief risk officer typically oversees processes to limit operational exposure to risks, and SVB said at the time olson’s recruitment That she “will lead the risk function and team, develop and maintain SVB’s risk management framework and the company’s risk management culture.”

Social media critics, mainly conservatives, have criticized that the bank kept a DEI official and allegedly focused on DEI and ESG (environmental, social and corporate governance) policies as the bank was falling behind the scenes.

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This week, Republican presidential candidate and venture capitalist Vivek Ramaswamy Silicon Valley Bank is called “One of the biggest evangelists of DEI and ESG.” Utah Republican Sen. Mike Lee took aim at the company on Twitter, pointing out that the ESG and DEI were not enough to “save” the bank.

Treasury Secretary Janet Yellen told Congress on Thursday morning that the US banking system remains “robust” despite the collapse of SVB, which represented the second largest bank failure in US history and the largest since Washington Mutual in 2008.