While the Silicon Valley Bank Collapsed, Top Executives Pushed Awakening Programs

The head of risk management at Silicon Valley Bank spent a lot of time spearheading several LGBTQ+ “awakening” programs, including a “safe space” for open stories, as the firm catapulted into collapse.

Jay Ersapah, Head of Financial Risk Management at SVB UK, has launched initiatives such as Pride’s first month-long campaign and a new blog dedicated to mental health issues for LGBTQ+ youth.

“The phrase ‘you can’t be what you can’t see’ resonates with me,” Ersapah was quoted as saying on the company’s website.

“As a queer people of color and a first-generation working-class immigrant, I didn’t have many role models to ‘see’ growing up against.”

Her efforts as Co-Chair of the European LGBTQIA+ Employee Resource Group earned her a spot on SVB’s “Outstanding LGBT+ Role Models 2022” list, published in a company announcement just four months before the bank was shut down by federal authorities over concerns about liquidity. .

In addition to hosting SVB’s first “safe space catch-up” that encouraged employees to share their coming-out stories, and participating in LGBTQ+ panels around the world, Ersapah has also served as director of role model diversity and volunteering as a mentor for the past year. for migrant leaders.

“I am honored to be the Co-Chair of the LGBTQ+ ERG and help spread the word about the queer life experience, partner with charities, and most of all, create a sense of community for our LGBTQ+ staff and allies.”

Ersapah could not be contacted for comment.

SVB was abruptly shut down Friday by the California Department of Financial Protection and Innovation shortly after it said it had taken a $1.8 billion hit from a $21 billion sale of its bonds.

It has run short of cash due to rising interest rates, and the recent crisis in the tech sector has caused many clients to cut their deposits.

Shares in SVB Financial, the bank’s parent company, fell a whopping 60% on Thursday.

Shares fell another 60% in premarket Friday before being stopped.

On Saturday, Home Depot co-founder Bernie Marcus hinted that a “wake-up” policy like the one launched by Ersapah could lead to SVB’s dramatic failure.

Follow The Post’s coverage of the collapse of Silicon Valley Bank

“I feel sorry for all these people who lost all their money in this woke up bank. You know, it was more distressing to hear that bank officials had sold their shares before that happened. It depresses me,” he told Neil Cavuto, a correspondent for Fox News.

“Who knows if the Department of Justice will follow them? They woke up the company, so I think not. And they’ll probably get away with it.”

The businessman accused the Biden administration of pushing companies and banks to account for global warming instead of shareholder returns, leading to catastrophic economic traps.

“These banks are poorly managed because they are all focused on diversity and all the awakening issues and not focusing on one thing they should be doing, which is shareholder returns,” Markus said.

“Instead of protecting shareholders and their employees, they care more about social policy. And I think it’s probably a badly run bank.

“They have been there for years. It’s a pity that so many people have lost money that can’t be returned.”

The implications of the collapse of the SVB are not entirely clear, but experts suggest that it could affect the future of regional and mid-sized banks across the country.

Rich clients frantically pulled their money out of the SVB after it collapsed and rushed to invest it in big banks like JPMorgan or Bank of America, sources told The Post.

Others have argued that the collapse of SVB could mean the end of innovation – SVB has been known for supporting startups, leaving a hole that other banks have been slow to fill.