{"id":264788,"date":"2023-03-16T18:27:42","date_gmt":"2023-03-16T23:27:42","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=264788"},"modified":"2023-03-17T12:23:05","modified_gmt":"2023-03-17T17:23:05","slug":"portnoy-lambastes-silicon-valley-bank-rescue","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/","title":{"rendered":"Barstool Boss David Portnoy Blasts Biden Silicon Valley Bank Bailout"},"content":{"rendered":"

Count Barstool Sports founder David Portnoy among those irked by President Biden rapidly moving to bail out now-crippled SVB Financial (NASDAQ: SIVB) — the parent of Silicon Valley Bank (SVB).<\/p>\n

\"Silicon
A Silicon Valley Bank branch in Northern California. Barstool Sports founder David Portnoy ripped the government’s rescue of the defunct bank. (Image: ABC News<\/em>)<\/figcaption><\/figure>\n

In an interview with Fox Business<\/em> on Thursday, Portnoy said Silicon Valley Bank operated a poor business model and that the government shouldn\u2019t support financial institutions in that position.<\/p>\n

When banks fail, it’s a tough one, because, again, the average \u2018Joe Schmo\u2019 puts their money [in], I want to get their money back, but I don’t think banks should necessarily be rescued because you’re running a bad business,” Portnoy said in the interview. \u201cNobody rescues me when I run out of money.\u201d<\/p><\/blockquote>\n

President Biden maintains that taxpayers won’t bear assistance for Silicon Valley Bank, which counts a slew of left-leaning political donors and Gov. Gavin Newsom (D-CA) among its clients.<\/p>\n

Still, last week\u2019s runs on SVB and Signature Bank of New York prompted speculation that other regional banks<\/a> could be in financially precarious spots, leading to rapid share price erosion while sending some institutions to the Federal Reserve\u2019s discount window to the tune of $152.85 billion. That\u2019s well over the $111 billion banks borrowed from the central bank during the 2008 financial crisis.<\/p>\n

Venture capitalist and GOP megadonor Peter Thiel confirmed he had $50 million in deposits at Silicon Valley Bank despite cautioning associates to yank cash from the institution.<\/p>\n

Portnoy Blasts SVB Business Model<\/h2>\n

Now officially a consultant to Penn Entertainment (NASDAQ: PENN) following that company\u2019s<\/a> $388 million February purchase of the 64% of Barstool it didn\u2019t previously own, Portnoy believes Silicon Valley Bank took on too much risk.<\/p>\n

“They were basically attracting risky companies, startups, crypto companies. That’s their wheelhouse. And you have more risk when you do that,” he told Fox host Stuart Varney. “I’m glad people are getting their deposits back because I don’t think the average Joe Schmo knows what they’re getting involved in.”<\/p>\n

\n

There may be something to Portnoy\u2019s assertion that the bank wasn\u2019t prioritizing adequate risk management. The bank\u2019s 2023 proxy filing indicates Chief Risk Officer Laura Izurieta departed last October but ceased performing that role in April 2022.<\/p>\n<\/div>\n

Additionally, the bank has been criticized for having a board of directors lacking investment banking experience. Meanwhile, a video surfaced earlier this week of Jay Ersapah, head of financial risk management at SVB\u2019s UK branch, boasting about the company\u2019s Pride Month celebrations and blog dedicated to LGBTQ+ youth, stoking criticism SVB\u2019s priorities were misplaced before its collapse.<\/p>\n

SVB Woke to Broke?<\/h2>\n

Perhaps surprisingly, given his penchant for rankling those on both the left and the right<\/a>, Portnoy didn\u2019t address allegations SVB\u2019s \u201cwoke\u201d agenda had a hand in the bank\u2019s demise. But, some market observers and political pundits on the right argue the bank did stray from its core missions of taking deposits, making loans, and effectively managing risk.<\/p>\n

\n

A so-called fact checker article in the New York Times<\/em> reported that the bank\u2019s diversity, equity, and inclusion (DEI) agenda didn’t contribute to its downfall. However, the article doesn\u2019t mention the bank\u2019s 2022 pledge to allocate $5 billion to sustainable finance causes or highlight SVB\u2019s $73.45 million in donations to Black Lives Matter and other social justice groups.<\/p>\n<\/div>\n

The Times <\/em>article also fails to mention an August 2020 report from the bank in which CEO Greg Becker boasts about two-thirds of the company\u2019s staff meeting diversity criteria and its matching programs dedicated to \u201cpandemic response, social justice, sustainability, and supporting women, Black and Latinx emerging talent, and other underrepresented groups.\u201d<\/p>\n

\u201cLatinx\u201d is vilified in much of the Latino community, with polls suggesting they view it as woke vernacular and prefer ethnic terms such as Hispanic, Latino, or those identifying specific countries. For example, Colombian-American or Mexican-American are highly preferred over Latinx.<\/p>\n","protected":false},"excerpt":{"rendered":"

Count Barstool Sports founder David Portnoy among those irked by President Biden rapidly moving to bail out now-crippled SVB Financial (NASDAQ: SIVB) — the parent of Silicon Valley Bank (SVB). In an interview with Fox Business on Thursday, Portnoy said Silicon Valley Bank operated a poor business model and that the government shouldn\u2019t support financial […]<\/p>\n","protected":false},"author":46,"featured_media":264795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,61,1074],"tags":[81903,81901,80968],"acf":[],"yoast_head":"\nPortnoy Lambastes Silicon Valley Bank Rescue<\/title>\n<meta name=\"description\" content=\"Barstool Sports founder Portnoy rips Silicon Valley Bank bail out.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Portnoy Lambastes Silicon Valley Bank Rescue\" \/>\n<meta property=\"og:description\" content=\"Barstool Sports founder Portnoy rips Silicon Valley Bank bail out.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-16T23:27:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-17T17:23:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/svb2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"992\" \/>\n\t<meta property=\"og:image:height\" content=\"558\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/\",\"url\":\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/\",\"name\":\"Portnoy Lambastes Silicon Valley Bank Rescue\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/svb2.jpg\",\"datePublished\":\"2023-03-16T23:27:42+00:00\",\"dateModified\":\"2023-03-17T17:23:05+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Barstool Sports founder Portnoy rips Silicon Valley Bank bail out.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/portnoy-lambastes-silicon-valley-bank-rescue\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/svb2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/svb2.jpg\",\"width\":992,\"height\":558,\"caption\":\"A Silicon Valley Bank branch. 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