MiniLinkSwarm for March 25, 2022

March 25th, 2023

For several weeks, I’ve been running out of time to post every link I’ve gathered, so I’ve been bumping some links (generally ones that seemed less time-sensitive or required more commentary than others) to the next week’s LinkSwarm, whereupon I may use one or two, but otherwise the process repeats.

Well, I’m just going to post all those today to clear the decks.

  • California’s leftwing Democratic Governor Gavin Newsom is using his position as governor subsidize his wife’s own leftwing business empire.

    In the summer of 2022, Governor Gavin Newsom convinced the state legislature to provide $4.7 billion for K-12 mental health services, which, among other things, funded 10,000 new school counselors.

    Gavin Newsom convinced the legislature because Jennifer Siebel Newsom, the wife of the governor, convinced him. The biggest advocate for mental health funding within the K-12 California public schools in the Newsom administration was Mrs. Newsom, according to published accounts.

    In fact, Gavin Newsom created The Office of First Partner so his wife could promote her policy agenda using taxpayer money. Since 2019, Siebel Newsom’s been armed with nearly $5 million and nine staffers within her subdivision of the governor’s office.

    Snip.

    Siebel Newsom spent years laying the ideological groundwork and political infrastructure to support her policy ambitions.

    In 2012, Siebel Newsom founded a nonprofit, The Representation Project, that licenses “gender justice” films and curricula to 5,000 schools in all 50 states. The year Gavin Newsom became governor, the California Board of Education adopted guidance that recommended her films and curriculum be licensed and used in classrooms.

    Policy making in California isn’t magic. Turns out, it’s a carefully thought through process to maximize political power and personal return from public investments.

    Last week, we investigated the sophisticated scheme through which Siebel Newsom’s film and curricula “gender justice” nonprofit, The Representation Project, leverages taxpayer dollars to promote radical ideologies, personally profit, and push the political ambitions of her husband. She brags that 2.6 million students have seen the films nationwide.

    The Representation Project contracts with her for-profit film-production company, Girls Club Entertainment. Since 2012, Siebel Newsom received $1.5 million in salary from the nonprofit. Furthermore, since 2012, the Siebel’s nonprofit paid her for-profit Girls Club $1.6 million to produce films.

    Last month, our investigation broke the story that The Representation Project was not in compliance with the California Charitable Solicitation Act. The organization was not permitted to operate or solicit donations in California most of 2022 – yet spent all last year in operation and fundraising.

    Now, we dig deeper, investigating the $4.8 million “Office of the First Partner” Gavin Newsom established for his wife’s policy work, and how Jennifer Siebel Newsom used her position to impact social and political processes, cashing checks along the way.

    n 2019, Gov. Newsom created an office for his wife as a division within the governor’s executive team. According to a press release “the First Partner and her team will focus on lifting up women and their families, breaking down barriers for our youth, and furthering the cause of gender equity in California.”

    Since inception, Siebel Newsom’s office has received nearly $4.8 million in directed taxpayer funding. The Office of First Partner has grown from seven employees with a budget of $791,000, to nine employees with a budget of $1,166,000 proposed for 2023-2024.

    Snip.

    Parents have complained about the pornographic content in Newsom’s films shown to 11-year-olds (such as an animated, upside-down stripper with tape over breasts) and 15-year-olds (nearly naked women being slapped, handcuffed, and brutalized in images taken from porn sites) — to view images, viewer discretion is advised.

    Editorials have criticized the activities in Newsom’s film The Great American Lie as “emotionally abusive.” The activities ask students to publicly reveal personal information and force commentary on their relative “privilege” and “oppression.”

    So Jennifer Siebel Newsom is using California taxpayer money to propagandize children for radical social justice and transexism.

  • An Australian comedian, YouTuber and Journalist, made videos making fun of Australian politicians and covering their oppressive Flu Manchu lockdown policies. That’s when they started trying to use the state machinery to shut him up. Then they firebombed him.

    Jordan Shanks is an Australian comedian, also know as freindlyjordies, who fell in to doing YouTube videos about Australian politicians and powerful companies over the past few years. Along the way he became a journalist, the only journalist covering some of the things being done by the government and the corporations. Then in November of 2022 his house was firebombed. It was only by chance that he wasn’t in the house at the time.

    And hey, if that sounds too dry, well you kids like Knives Out or whatever. Stick around. It’s a pretty interesting whodunit.

    Most of the Australian press is even more in the bag for the powers-that-be than the US national media is for the Democrats. There were numerous stories, all but ignored by the mainstream. One example, the Premiere of New South Wales was under investigation. That was all but ignored by the press until she resigned. Then there were the antics of her Deputy Premiere, John Barilaro.

    That is the most entertaining — or damaging to powers that be — story friendlyjordies covered.

    As a result of that coverage, the Australian anti-terrorism machinery was directed at Shanks and his employees. Of course that turned out to be a group of Keystone cops, which got their own exposure on freindlyjordies. Along the way he exposed the abuse of the anti-terrorism squad, the relationship between some of the politicians and large corporations and perhaps organized crime. Then in November of the last year, after the lawsuits failed, the anti-terrorism actions failed, and the intimidation failed, someone moved to direct action, and tried to kill him.

  • You may remember my previous post on the army selecting the M5 Next Generation Squad Weapon. So how is that going? Evidently not well.

    On all key technical measures, the Next Generation Squad Weapons program is imploding before Army’s very eyes. The program is on mechanical life support, with its progenitors at the Joint Chiefs obstinately now ramming the program through despite spectacularly failing multiple civilian-sector peer reviews almost immediately upon commercial release.

    Indeed the rifle seems cursed from birth. Even the naming has failed. Army recently allowed a third-party company to scare it off the military designation M5. The re-naming will certainly also help scupper bad public relations growing around ‘XM-5′ search results.

    Civilian testing problems have, or should have, sunk the program already. The XM-5/7 as it turns out fails a single round into a mud test. Given the platform is a piston-driven rifle it now lacks gas, as the M-16 was originally designed, to blow away debris from the eject port. Possibly aiming to avoid long-term health and safety issues associated with rifle gas, Army has selected an operating system less hardy in battlefield environments. A choice understandable in certain respects, however, in the larger scheme the decision presents potentially war-losing cost/benefit analysis.

    Civilian testing, testing Army either never did or is hiding, also only recently demonstrated that the rifle seemingly fails, at point-blank ranges, to meet its base criteria of penetrating Level 4 body armor (unassisted). True, the Army never explicitly set this goal, but it has nonetheless insinuated at every level, from media to Congress, that the rifle will penetrate said armor unassisted. Indeed, that was the entire point of the program. Of course, the rounds can penetrate body armor with Armor Piercing rounds, but so can 7.62x51mm NATO, even 5.56x45mm NATO.

    The fundamental problem with the program is there remains not enough tungsten available from China, as Army knows, to make the goal of making every round armor piercing even remotely feasible. The plan also assumes that the world’s by far largest supplier will have zero problems selling tungsten to America only for it to be shot back at its troops during World War III. Even making steel core penetrators would be exceedingly difficult when the time came, adding layers of complexity and time to the most time-contingent of human endeavors. In any case, most large bullet manufacturers and even Army pre-program have moved to tungsten penetrators for a reason, despite the fact it increases the cost by an order of magnitude and supply seems troubled. Perhaps Army has a solution, perhaps.

    The slight increase in ballistic coefficiency between the 6.8x51mm and 7.62x51mm cartridges neither justified the money pumped into the program nor does the slight increase in kinetic energy dumped on target. Itself a simple function of case pressurization within the bastardized 7.62mm case. Thus the net mechanical results of the program design-wise is a rifle still chambered in a 7.62×51 mm NATO base case (as the M-14), enjoying now two ways to charge the weapon and a folding stock. This is the limit of the touted generational design ‘leap’ under the program. And while the increased case pressure technology is very welcome the problem is, in terms of ballistics, the round is in no way a leap ahead compared to existing off-the-shelf options as those Army nearly went with under the now disavowed Interim Combat Service Rifle program, or it in fact did purchase schizophrenically just before the NGSW program began with the HK M110A1.

    The Army is evidently still moving ahead with the program.

    I can’t tell you whether the criticisms are true or not unless Sig Saur sends me a example to shoot. While that would be cool, I suspect it’s pretty unlikely, and I fear many test ranges have picayune policies against using military grade automatic weapons…

  • How Georgetown Law cracked down on Flu manchu mandate heretics.

    For questioning Covid restrictions, Georgetown Law suspended me from campus, forced me to undergo a psychiatric evaluation, required me to waive my right to medical confidentiality, and threatened to report me to state bar associations.

    The Dean of Students claimed that I posed a “risk to the public health” of the University, but I quickly learned that my crime had been heretical, not medical.

    Just before I entered Georgetown Law in August 2019, I watched The Paper Chase, a 1973 film about a first-year Harvard Law student and his experiences with a demanding professor, Charles Kingsfield.

    The movie has the standard themes of law school: teaching students how to think, challenging the premises of an argument, differentiating fact patterns to support precedent. Kingsfield’s demands represent the difficulty of law school, and the most important skill is articulate, logic-based communication. “Nobody inhibits you from expressing yourself,” he scolds one student.

    “Nobody inhibits you from expressing yourself.”

    Two years later, I realized that Georgetown Law had inverted that script. The school fired a professor for commenting on differences in achievement between racial groups, slandered faculty members for deviating from university group-think, and threatened to destroy dissidents. Students banished cabinet officials from campus and demanded censorship of a tenured professor for her work defending women’s rights in Muslim-majority countries.

    Unaware of the paradigm shift, I thought it was proper to ask questions about Georgetown’s Covid policies.

    In August 2021, Georgetown Law returned to in-person learning after 17 months of virtual learning. The school announced a series of new policies for the school year: there was a vaccine requirement (later to be supplemented with booster mandates), students were required to wear masks on campus, and drinking water was banned in the classroom.

    Dean Bill Treanor announced a new anonymous hotline called “Law Compliance” for community members to report dissidents who dared to quench their thirst or free their vaccinated nostrils.

    Meanwhile, faculty members were exempt from the requirement, though the school never explained what factors caused their heightened powers of immunity.

    Shortly thereafter, I received a notification from “Law Compliance” that I had been “identified as non-compliant” for “letting the mask fall beneath [my] nose.” I had a meeting with Dean of Students Mitch Bailin to discuss my insubordination, and I tried to voice my concerns about the irrationality of the school’s policies.

    He had no answers to my simple questions but assured me that he “understood my frustration.” Then, he encouraged me to “get involved in the conversation,” telling me there was a Student Bar Association meeting set to take place the following Wednesday.

    I arrived at the meeting with curiosity. I had no interest in banging my fists and causing a commotion; I just wanted to know the reasoning – the “rational basis” that law schools so often discuss – behind our school’s policies. There were four simple questions:

  • What was the goal of the school’s Covid policy? (Zero Covid? Flatten the curve?)
  • What was the limiting principle to that goal? (What were the tradeoffs?)
  • What metrics would the community need to reach for the school to remove its mask mandate?
  • How can you explain the contradictions in your policies? For example, how could the virus be so dangerous that we could not take a sip of water but safe enough that we were required to be present? Why are faculty exempt from masking requirements?
  • I feared there were simple answers to my questions that I had overlooked: these administrators made hundreds of thousands of dollars per year, surely they must have had some reasoning behind their draconian measures. Right? The contradictions appeared obvious to me. The data seemed to be clear, but maybe there was an explanation.

    I delivered the brief speech without a mask, standing fifteen feet away from the nearest person. I awaited a response to my questions, but I realized this wasn’t about facts or data, premises or conclusions. This was about power and image.

    Arbitrary. Irrational. Capricious. Students learn in their first days of their legal education to invoke these words to challenge unfavored laws and policies. I figured that I was doing the same, and I thought the school would welcome a calm, albeit defiant, student asking the questions rather than loud and angry crowds.

    But this assumption turned out to be an incorrect premise. Nobody cared about my points regarding rationality – they cared that I had been reading from the wrong script. Even worse, not wearing a mask had been a more objectionable wardrobe malfunction than Janet Jackson’s Super Bowl performance.

    (Hat tip: Sarah Hoyt at Instapundit.)

  • Scrapped Railway Project Could Derail Putin’s Arctic Ambitions.

    Moscow’s ability to develop its own resource-based economy, expand the Northern Sea Route, cement ties with China and support Vladimir Putin’s ambitions to project power into the Arctic depends on the development of land-based infrastructure in the northern regions of the Russian Federation…

    Yet, that ability has now been called into question, as the Russian government has canceled, despite Putin’s repeated orders to the contrary, a program to complete the broad-gauge Northern Broad-Gauge Railway. The route was intended to link settlements that support the Northern Sea Route, military bases and the locations of key sources of raw materials across the Russian North with the rest of the country…

    Snip.

    What appears to be this project’s death knell, at least for the time being, is instructive in its own right. It occurred not with some dramatic single action by the Kremlin but in a rolling fashion as has often been the case with the backtracking of decisions under Putin. In April 2021, to much acclaim, the Russian president called for construction of the Northern Broad-Gauge Railway to begin, with the goal of completing the project in the next few years. Yet, despite Putin’s words, nothing happened, at least in part because of the COVID-19 pandemic, increased spending for his war against Ukraine and the impact of Western sanctions. Then, in 2022, Putin issued a new order for the project to go ahead. Again, nothing happened. Instead, less than a month later, Marat Khusnullin, a Russian deputy prime minister, quietly stopped all work on the project without giving anyone reason to think it would be resumed. Indeed, many Russian experts and commentators concerned with infrastructure issues believe that this railway plan has come to the end of its line, and one has even suggested that the cancellation of this project puts “a cross on the future of Russia.

    Russia was broke before it launched its illegal war of territorial aggression against the Ukraine. Now it’s even more broke.

  • Turns out I got through all but one…

    LinkSwarm for March 24, 2023

    March 24th, 2023

    More on the collapse of Silicon Valley Bank, Syria gets spicy again, woke companies like Disney are having massive layoffs, and Sig Saur gets into the Killbot business. It’s the Friday LinkSwarm!

  • Things that make you go Hmmmm:

    Courtesy of Bloomberg’s reporting, it appears that not only were insiders dumping their shares faster than syphilitic hooker, there were loading up on loans from the bank at a scale that makes a mockery of any regulatory oversight…

    Yes, that’s real.

    Loans to officers, directors and principal shareholders, and their related interests, more than tripled from the third quarter last year to $219 million in the final three months of 2022 – a record dollar amount of loans going back over 20 years.

    Many questions come to mind – what were the terms, who were the recipients, what was the collateral?

    But, sadly, we will likely never know.

    However, we do note that the banking execs may be facing a serious shortfall (like their bank): if the loans were collateralized by SVB shares for example, those shares are now worthless, leaving the loan-heavy C-suite left to come up with the cash to repay the loans (and no, these loans don’t disappear with the bank’s liquidation).

    Between that and the insider share dumping, people need to go to jail.

  • Speaking of insiders, let’s talk about FTX and Silicon Valley Bank’s ties to the World Economic Forum.

    After the implosion of the FTX crypto exchange run by Sam Bankman Fried, questions of due diligence and competency immediately arose, suggesting that perhaps the company mishandled assets “accidentally” and that Fried was naive and “in over his head.” Numerous central bank officials and globalist organizations jumped into the debate almost immediately, arguing that FTX was a perfect example of why centralized regulation of crypto and digital currencies was necessary. They claimed that without oversight by banking elites, disaster was inevitable.

    Of course, what they did not mention was that FTX and Sam Fried already had extensive connections with globalist groups including the World Economic Forum. In fact, the very basis of Fried’s business model was the WEF’s “Stakeholder Capitalism” theory, which he often referred to as “Effective Altruism.”

    Stakeholder Capitalism is essentially the opposite of free markets – It is a socialist/globalist framework which uses corporations as a kind of economic enforcement tool. Corporations are already highly socialistic in their operations, and their existence is completely dependent on their special relationship with government. Corporations are created through government charter, enjoy special protections under “corporate personhood” laws and avoid direct consequences for criminal activities through limited liability.

    Many corporations are not even allowed to fail because governments backstop their operations. That’s socialism, not free markets. However, “stakeholder capitalism” expands on this dynamic a hundred-fold.

    Where free markets assert that businesses must make profit their primary objective for the overall economy to function, the WEF asserts that companies including banking institutions have a social obligation that goes beyond making money. To the typical leftist this probably sounds like a Utopian vision filled with promise, but to anyone that actually understands economics it sounds like a recipe for the collapse of civilization.

    The WEF paints stakeholder capitalism an effort to reign in the power of the corporate system in favor of social causes. In reality, it’s a way to give corporations ultimate power over everything, including ultimate influence over public behavior.

    We have seen extensive evidence of this through widespread corporate ESG investment programs implemented in the past several years. It is no coincidence that the invasion of woke ideology into the mainstream happened at the exact same time that ESG-based lending accelerated.

    The institutions lending to various companies were able to set social rules for access to credit, and these rules required businesses to adopt far-left politics in their marketing and policies as a result. Stakeholder capitalism is about homogenizing all business into a single ideological entity – Instead of competing with each other for market share through innovation, companies have been abandoning merit based competition and are colluding to saturate the mainstream with social justice cultism, climate change propaganda and globalist rhetoric.

    By making corporate elites “responsible” for society, we give them the power to engineer society.

    However, the WEF’s model of false altruism is turning out to be a disaster for corporate survival. I have to wonder now if this was the intent all along – To create a kind of ESG fueled woke financial bubble that was always intended to come crashing down, leaving the western world in ruins.

    Snip.

    Looking into SVB’s operational history, the company was a woke nightmare.

    Take a gander at their 66 page ESG report compiled in 2021 to get a sense of how far to the extreme political left the bank was. SVB is the pinnacle example of why “Get Woke, Go Broke” is more than a mantra, it’s a rule.

    Digging even deeper we then find that SVB’s leadership was highly involved in the WEF and their Stakeholder Capitalism Metrics (SCM), along with corporate governance. SVB was not only implementing every single policy the WEF outlines in its agenda, they were reporting back to the WEF on their progress.

    SVB’s capital exposure was heavily tied up in securities, but also venture capital for woke tech startups, climate change related projects and leftist activist groups which qualified for ESG loans; everything from BLM to Buzzfeed. In other words, they were investing aggressively into money-pit projects that devoured cash and gave nothing back. The real question is, how many US banks are involved in ESG and WEF operations at the same level as SVB? Dozens? Hundreds?

  • “U.S. Carries Out Airstrikes in Syria after Iranian Drone Kills U.S. Contractor, Wounds Five Service Members.” As I’ve mentioned before the withdrawal of most U.S. troops from Iraq and Syria doesn’t mean all. And the same goes for Africa.
  • Fifth Circuit Court of Appeals blocks Biden’s Flu Manchu mandate.
  • After demanding that the police be defunded, San Francisco District Supervisor Hillary Ronen now demands more cops in her district.

    (Hat tip: Stephen Green at Instapundit.)

  • 56% of liberal white women age 18-29 have been diagnosed with a mental health condition.” Well, you already said “liberal”…
  • Louisiana state Rep. Francis Thompson switched from the Democratic to the Republican Party, given Republicans a super-majority in both houses and thus the ability to override any veto by Democratic Governor John Bel Edwards. ““The push the past several years by Democratic leadership on both the national and state level to support certain issues does not align with those values and principles that are a part of my Christian life,” said Thompson.
  • World Athletics, the governing body for international track and field competition, has banned men from international competition. “I’ll take ‘Headlines no one in the 20th century would understand’ for $600, Alex.”
  • “Dallas Bar Cancels All-ages Drag Event.” Funny how the threat of having your TABC license yanked concentrates the mind…
  • Get Woke, Go Broke Part 1: After a string of expensive bombs and streaming losses, Disney to lay off 7,000 employees.
  • Get Woke, Go Broke 1.5: “Woke Marvel Producer Victoria Alonso Gone From MCU.” She was one of the central figures pushing Disney to adopt a pro-groomer position in Florida. The ostensible reason for her firing was breach of contract for producing a non-Marvel movie, but a lot of industry insiders think her outspoken wokeness was a key reason for her getting the axe.
  • Get Woke, Go Broke Part 2: “Twitch Streaming Service To Sack 36% Of Employees.”
  • Another headline I didn’t expect: “SIG Sauer Acquires General Robotics.”

    SIG Sauer announced late last week it has acquired General Robotics, one of the world’s premier manufacturers of lightweight remote weapon stations and tactical robotics for manned and unmanned platforms as well as anti-drone applications. The companies have been working in concert for some time, a fact made obvious at January’s SHOT Show when they debuted a Polaris ATV equipped with a General Robotics PitBull remote weapons station that aimed and fired the vehicle-mounted SIG MG 338 belt-fed machine gun remotely.

    “This acquisition will greatly enhance SIG Sauer’s growing portfolio of advanced weapon systems,” said Ron Cohen, president and CEO of SIG Sauer. The team at General Robotics is leading the way in the development of intuitive, lightweight remote weapon stations with their battle-proven solution.”

  • Nobody should still be using cardboard sheathing on houses.
  • The Y-shaped Chicago building made more stable by adding a giant water tank at the top.
  • “Alex, I’ll take ‘The Rapist Zach‘ for $400.”
  • “It is a belief in the Cocaine Bear’s authority that allows it to officiate legally binding weddings in Kentucky.”
  • “Family Does Modified Version Of Dave Ramsey Plan Where They Just Never Budget And Spend Way Too Much Money.”
  • “Democrats Vow To Arrest As Many Political Opponents As It Takes To Defeat Fascism.”
  • “Trump To Be Indicted For Removing Mattress Tag In 1997.”
  • No one expects SwordDog!
  • Square Zero

    March 23rd, 2023

    Dwight sent over this Hindenberg Research piece on Block AKA Square AKA Cash App.

    Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.

    There’s also a negative side.

    Even the summary is pretty breathtaking in the rang of allegations:

  • Most analysts are excited about the post-pandemic surge of Block’s Cash App platform, with expectations that its 51 million monthly transacting active users and low customer acquisition costs will drive high margin growth and serve as a future platform to offer new products.
  • Our research indicates, however, that Block has wildly overstated its genuine user counts and has understated its customer acquisition costs. Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.
  • Core to the issue is that Block has embraced one traditionally very “underbanked” segment of the population: criminals. The company’s “Wild West” approach to compliance made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly.
  • Even when users were caught engaging in fraud or other prohibited activity, Block blacklisted the account without banning the user. A former customer service rep shared screenshots showing how blacklisted accounts were regularly associated with dozens or hundreds of other active accounts suspected of fraud. This phenomenon of allowing blacklisted users was so common that rappers bragged about it in hip hop songs.
  • Block obfuscates how many individuals are on the Cash App platform by reporting misleading “transacting active” metrics filled with fake and duplicate accounts. Block can and should clarify to investors an estimate on how many unique people actually use Cash App.
  • CEO Jack Dorsey has publicly touted how Cash App is mentioned in hundreds of hip hop songs as evidence of its mainstream appeal. A review of those songs show that the artists are not generally rapping about Cash App’s smooth user interface—many describe using it to scam, traffic drugs or even pay for murder…
  • “I paid them hitters through Cash App”— Block paid to promote a video for a song called “Cash App” which described paying contract killers through the app. The song’s artist was later arrested for attempted murder.
  • Cash App was also cited “by far” as the top app used in reported U.S. sex trafficking, according to a leading non-profit organization. Multiple Department of Justice complaints outline how Cash App has been used to facilitate sex trafficking, including sex trafficking of minors.
  • There is even a gang named after Cash App: In 2021, Baltimore authorities charged members of the “Cash App” gang with distribution of fentanyl in a West Baltimore neighborhood, according to news reports and criminal records.
  • Beyond facilitating payments for criminal activity, the platform has been overrun with scam accounts and fake users, according to numerous interviews with former employees.
  • Examples of obvious distortions abound: “Jack Dorsey” has multiple fake accounts, including some that appear aimed at scamming Cash App users. “Elon Musk” and “Donald Trump” have dozens.
  • To test this, we turned our accounts into “Donald Trump” and “Elon Musk” and were easily able to send and receive money. We ordered a Cash Card under our obviously fake Donald Trump account, checking to see if Cash App’s compliance would take issue—the card promptly arrived in the mail.
  • Former employees described how Cash App suppressed internal concerns and ignored user pleas for help as criminal activity and fraud ran rampant on its platform. This appeared to be an effort to grow Cash App’s user base by strategically disregarding Anti Money Laundering (AML) rules.
  • The COVID-19 pandemic and nationwide lockdowns posed an existential threat to Block’s key driver of gross profit at the time, merchant services.
  • In this environment, amid Cash App’s anti-compliance free-for-all, the app facilitated a massive wave of government COVID-relief payments. CEO Jack Dorsey Tweeted that users could get government payments through Cash App “immediately” with “no bank account needed” due to its frictionless technology.
  • Within weeks of Cash App accounts receiving their first government payments, states were seeking to claw back suspected fraudulent payments—Washington State wanted more than $200 million back from payment processors while Arizona sought to recover $500 million, former employees told us.
  • Once again, the signs were hard to miss. Rapper “Nuke Bizzle”, made a popular music video about committing COVID fraud. Several weeks later, he was arrested and eventually convicted for committing COVID fraud. The only payment provider mentioned in the indictment was Cash App, which was used to facilitate the fraudulent payments.
  • We filed public records requests to learn more about Block’s role in facilitating pandemic relief fraud and received answers from several states.
  • Massachusetts sought to claw back over 69,000 unemployment payments from Cash App accounts just four months into the pandemic. Suspect transactions at Cash App’s partner bank were disproportionate, exceeding major banks like JP Morgan and Wells Fargo, despite the latter banks having 4x-5x as many deposit accounts.
  • In Ohio, Cash App’s partner bank had 8x the suspect pandemic-related unemployment payments as the bank that processed the most unemployment claims in the state, even though the latter bank processed 2x the claims as Cash App’s, according to data we obtained via a public records request.
  • The data shows that compared to its Ohio competitor, Cash App’s partner bank had nearly 10x the number of applicants who applied for benefits through a bank account used by another claimant – a clear red flag of fraud.
  • Block had obvious compliance lapses that made fraud easy, such as permitting single accounts to receive unemployment payments on behalf of multiple individuals from various states and ineffective address verification.
  • In an apparent effort to preserve its growth engine, Cash App ignored internal employee concerns, along with warnings from the Secret Service, the U.S. Department of Labor OIG, FinCEN, and State Regulators which all specifically flagged the issue of multiple COVID relief payments going to the same account as an obvious sign of fraud.
  • Block reported a pandemic surge in user counts and revenue, ignoring the contribution of widespread fraudulent accounts and payments. The new business provided a sharp one-time increase to Block’s stock, which rose 639% in 18 months during the pandemic.
  • As Block’s stock soared on the back of its facilitation of fraud, co-founders Jack Dorsey and James McKelvey collectively sold over $1 billion of stock during the pandemic. Other executives, including CFO Amrita Ahuja and the lead manager for Cash App Brian Grassadonia, also dumped millions of dollars in stock.
  • With its influx of pandemic Cash App users, our research shows Block has quietly fueled its profitability by avoiding a key banking regulation meant to protect merchants. “Interchange fees” are fees charged to merchants for accepting use of various payment cards.
  • Congress passed a law that legally caps “interchange fees” charged by large banks that have over $10 billion in assets. Despite having $31 billion in assets, Block avoids these regulations by routing payments through a small bank and gouging merchants with elevated fees.
  • Block includes only a single vague reference in its filings acknowledging it earns revenue from “interchange fees”. It has never revealed the full economics of this category, yet roughly one-third of Cash App’s revenue came from this opaque source, according to a 2022 Credit Suisse research report.
  • Competitor PayPal has disclosed it is under investigation by both the SEC and the CFPB over its similar use of a small bank to avoid “interchange fee” caps. A Freedom of Information Act (FOIA) request we filed with the SEC indicates that Block may be part of a similar investigation.
  • Block’s $29 billion deal to acquire ‘buy now pay later’ (BNPL) service Afterpay closed in January 2022. Afterpay has been celebrated by Block as a major financial innovation, allowing users to buy things like a pair of shoes or a t-shirt and pay over time, only incurring massive fees if subsequent payments are late.
  • Afterpay was designed in a way that avoided responsible lending rules in its native Australia, extending a form of credit to users without income verification or credit checks. The service doesn’t technically charge “interest”, but late fees can reach APR equivalents as high as 289%.
  • The acquisition is flopping. In 2022, the year Afterpay was acquired, it lost $357 million, accelerating from 2021 losses of $184 million.
  • Fitch Ratings reported that Afterpay delinquencies through March 2022 had more than doubled to 4.1%, from 1.7% in June 2021 (just prior to the announced acquisition). Total processing volume declined -4.8% from the previous year.
  • Block regularly hypes other mundane or predatory sources of revenue as technological breakthroughs. Roughly 31% of Cash App’s revenue comes from “instant deposit” which Block says it pioneered and works as if by “magic”. Every other major competitor we checked provides a similar service at comparable or better rates.
  • On a purely fundamental basis, even before factoring in the findings of our investigation, we see downside of between 65% to 75% in Block shares. Block reported a 1% year over year revenue decline and a GAAP loss of $540.7 million in 2022. Analysts have future expectations of GAAP unprofitability and the company has warned it may not be profitable.
  • Despite this, Block is valued like a profitable growth company at (i) an EV/EBITDA multiple of 60x; (ii) a forward 2023 “adjusted” earnings multiple of 41x; and (iii) a price to tangible book ratio of 13.1x, all wildly out of line with fintech peers.
  • Despite its current rich multiples, Block is also facing threats from key competitors like Zelle, Venmo/Paypal and fast-growing payment solutions from smartphone powerhouses like Apple and Google. Apple has grown Apple Pay activations from 20% in 2017 to over 70% in 2022 and now leads in digital wallet market share.
  • In sum, we think Block has misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth and profit from facilitation of fraud against consumers and the government.
  • We also believe Jack Dorsey has built an empire—and amassed a $5 billion personal fortune—professing to care deeply about the demographics he is taking advantage of. With Dorsey and top executives already having sold over $1 billion in equity on Block’s meteoric pandemic run higher, they have ensured they will be fine, regardless of the outcome for everyone else.
  • That’s just the high level summary. There’s a whole lot more detail in the report.

    I have never once used Cash App. I have an ancient Square Reader floating around in a bag somewhere, but I never actually ran any transactions on it. I do have PayPal, because I pretty much have to in order to buy or sell on eBay (though I’ve gotten to the point I do almost no selling there). I don’t even use Apple Pay, despite having a MacBook Pro and iPhone.

    Speaking of fees, here Louis Rossmann rants about how Square refuses to return fees for refunds:

    Anyway, if you’re using Square or CashApp, maybe it’s a good time to look into alternatives…

    Russia’s Rolling Tank Museum

    March 22nd, 2023

    Back when I reviewed The Beast, I said “While the Russians have been demothballing old Soviet tanks to send to Ukraine, they haven’t become desperate enough to send T-55s to the front lines, assuming they still have any that are able to run.”

    Guess what?

    Russia is demothballing T-54s/55s and sending them to Ukraine. Maybe not for front-line duty (or at least I bet that’s what they’re telling the probably green tankers they’re stuffing into them). Maybe they’re putting in new thermal sights, and maybe not. Some have suggested they’re also adding explosive reactive armor as well, but since much of the stuff found on captured newer tanks turned out to be fake, I rather doubt it.

    Does this mean Russia is running out of tanks? Not necessarily. Maybe they’re saving more modern tanks in reserve for a spring or summer offensive and sending all this old crap in as a stopgap. But a whole lot of slightly less ancient T-62s are up on Oryx, so I suspect we’ll start seeing Ukrainian forces take out T-55s in Ukraine sooner rather than later.

    Given how antiquated T-54/55s are on the modern battlefield, I would suggest that the U.S. government demothball a goodly number of original M1 Abramss, maybe with some slight equipment upgrades, and ship them to Ukraine, assuming enough 105mm rounds can be scrounged up. They were effective enough to destroy Soviet armor in Desert Storm, and the stuff Russia is currently shipping to Ukraine is considerably older than that.

    Faster, Traxxas! Kill! Kill!

    March 21st, 2023

    During World War II, the Wehrmacht developed the remote-controlled Goliath tracked mine to take out tanks, fortifications, and other targets. Despite some models packing a whopping 220 pounds of explosive, they sort of looked like a toy a child could ride on, and would almost be adorable if it weren’t for the fact that they were Nazi death bombs.

    Photo taken of a Goliath tracked mine at the Bovington Tank Museum

    Who’s an adorable little Nazi death bomb? You are! You are!

    As in so many things, Ukrainians have rediscovered and deployed (kinda) another lost weapon/tactic from World War II. Namely, they’re using remote control vehicles as suicide antitank bombs.

    I’ve long thought you could use even smaller, slightly modified off-the-shelf RC cars in mass to take out softer targets like trucks. Or drive into a enemy barracks with just a couple of pounds of plastique studded with roofing nails.

    The Russo-Ukrainian War continues to expand the possibilities of drone warfare, and I trust the Pentagon (and every other military in the world) is taking notes.

    France’s Existential Crisis

    March 20th, 2023

    “How can anyone govern a nation that has two hundred and forty-six different kinds of cheese?” – Charles de Gaulle (attributed)

    Ah, France! [Insert lazy paragraph describing France in in terms of classic cliches including food, wine, cheese, sex, cigarettes and surrender.]

    Yes, you’ll do nicely, Cliched French Guy Clip Art

    In addition to those classic French attributes, another time-honored French tradition is “widespread rioting,” which they’ve been celebrating over the last few weeks. What they’re protesting is French President Emmanuel Macron’s decision to force through an unpopular bill to raise the retirement age from 62 to 64.

    French President Emmanuel Macron ordered his prime minister to wield a special constitutional power Thursday that skirts parliament to force through a highly unpopular bill raising the retirement age from 62 to 64 without a vote.

    His calculated risk set off a clamor among lawmakers, who began singing the national anthem even before Prime Minister Elisabeth Borne arrived in the lower chamber. She spoke forcefully over their shouts, acknowledging that Macron’s unilateral move will trigger quick motions of no-confidence in his government.

    The fury of opposition lawmakers echoed the anger of citizens and workers’ unions. Thousands gathered at the Place de la Concorde facing the National Assembly, lighting a bonfire. As night fell, police charged the demonstrators in waves to clear the elegant Place. Small groups of those chased away moved through nearby streets in the chic neighborhood setting street fires. At least 120 were detained, police said.

    Similar scenes repeated themselves in numerous other cities, from Rennes and Nantes in the east to Lyon and the southern port city of Marseille, where shop windows and bank fronts were smashed, according to French media. Radical leftist groups were blamed for at least some of the destruction.

    The unions that have organized strikes and marches since January, leaving Paris reeking in piles of garbage, announced new rallies and protest marches in the days ahead. “This retirement reform is brutal, unjust, unjustified for the world of workers,” they declared.

    Macron has made the proposed pension changes the key priority of his second term, arguing that reform is needed to keep the pension system from diving into deficit as France, like many richer nations, faces lower birth rates and longer life expectancy.

    Macron decided to invoke the special power during a Cabinet meeting at the Elysee presidential palace, just a few minutes before the scheduled vote in France’s lower house of parliament, because he had no guarantee of a majority.

    Some background on the maneuver.

    French President Emmanuel Macron chose on Thursday to shun parliament and impose his unpopular pension reforms via a special constitutional power, the so-called “Article 49.3.”

    The procedure has been regularly used in the past by different governments. But this time it’s drawing a lot of attention and prompting much criticism because of the massive public opposition to the increase in retirement ages.

    Here’s a look at how and why the special power is used.

    WHAT’S ARTICLE 49.3?

    Article 49, paragraph 3 of the French Constitution provides that the government can pass a bill without a vote at the National Assembly, the lower house of parliament, after a deliberation at a Cabinet meeting.

    In response, lawmakers can file a no-confidence motion within 24 hours. If the motion gets approval from more than half the seats, the text is rejected and the government must resign.

    If not, the bill is considered adopted and passes into law. Since the Constitution was established in 1958, only one no-confidence motion was successful, in 1962.

    Charles de Gaulle (him again) rammed through the Constitution of the Fifth Republic because he wanted a stable central government and, compared to some other European states (I’m looking at you, Italy), it’s largely achieved those goals.

    The thing is, Macron is probably right in that the French welfare state needs an older retirement age for the entire system to stay solvent (at least for a while longer). But the way his proposal was passed also emblematic of the deficit of democracy in the EU generally and France specifically. That old saw about democracies only lasting until people figuring out they can vote themselves largess from the public treasury is largely right, and in this, as in so many, many things, Eurocratic elites have decided the peasants simply can’t be allowed to derail the plans of their illustrious betters.

    As of this writing, Macron just survived a no confidence vote over the issue. So France may well have bought itself a little more time before inevitable national bankruptcy. But every maneuver like increases French anger over the obvious democracy gap, and, as the Grand Tour lads have noted, the French can be exceptionally bloody minded over expressing their disapproval of laws they hate.

    1911 vs. 2011

    March 19th, 2023

    With John Wick: Chapter 4 due in theaters soon, there’s been a lot of talk of 2011 model semi-auto pistols. The biggest difference between it and the classic 1911 design seems to be a separate polymer grip that better isolates the shooter’s hand from perceived recoil.

    Here’s Joe Rogan shooting a Pit Viper, which is evidently the 2011 model Wick shoots in the film:

    “That is the smoothest gun of all time. It doesn’t move. Like it literally doesn’t move, there’s no recoil.”

    It does indeed look pretty cool and easy to shoot, but before you rush out to buy one, keep in mind that: A.) It’s not going to be available for sale until May, and B.) It’s going to set you back about seven grand.

    Here Colion Noir interviews a rep for Staccato about the differences between the 1911 and the 2011.

    Staccato is in Texas, and their 2011 models start at a somewhat more reasonable $2,499.

    (Aside: I like Noir, but he does the “yeah,” “uh-hu” noise thing that tells the person he’s talking to “Yes, I’m following you,” which he needs to learn not to do for filmed interviews.)

    Is there significant enough difference between a 1911 and a 2011 to justify the nomenclature change? I’m slightly skeptical, but I’ve never fired a 2011. Maybe the difference is night and day.

    Would I buy a 2011? Not right now, mainly because I just picked up a Sig Sauer P365 Micro Compact 9mm as a carry gun last year, and even $2,500 is considerably more than I want to spend on a gun right now. But if the prices drift down to around $1,000 over the next few years, I’d definitely give them a more serious look.

    Something About Credit Suisse

    March 18th, 2023

    I meant to mention something about the Credit Suisse situation in Friday’s LinkSwarm but ran out of time. I’m not an expert on European banking in general or Swiss banking in specific. (As opposed to being a squinty, one-eyed, myopic man in the land of the blind sort of expert on American banking, which is not very.) But it’s a big story, so I suppose I should post something about Credit Suisse.

    So here’s something.

  • First, as of this writing, it appears that fellow Swiss bank UBS is about to take over Credit Suisse, probably with the financial backing of the Swiss National Bank (SNB)

    Late on Thursday, just hours after the SNB had launched the first (of many) bailout attempts of Swiss banking giant Credit Suisse, Bloomberg blasted the following headline:

    *UBS, CREDIT SUISSE SAID TO OPPOSE IDEA OF A FORCED COMBINATION

    This lack of enthusiasm by UBS to acquire its struggling rival of course forced the Swiss National Bank to front CS a CHF50 billion credit line to hold it over for the next four days amid a furious bank run, one which we said would be woefully insufficient to restore confidence in the collapsing lender, and which we probably used up in just a few hours.

    Then, late on Friday, both banks “unexpectedly” changed their minds and we got the following 180 degree U-Turn report from the FT:

    *UBS IN TALKS TO ACQUIRE ALL OR PART OF CREDIT SUISSE: FT

    So a deal is inevitable after all… but as always, there is a footnote one which we predicted yesterday when we said that a deal would only happen if the acquiring bank – in this case UBS – got a full central bank backstop.

    That now appears to be the case with Bloomberg, Reuters and the WSJ all reporting that UBS is asking the Swiss government for a backstop to cover future risks if it were to buy Credit Suisse Group AG, after the Swiss National Bank and regulator Finma have told international counterparts that they regard a deal with UBS as the only option to arrest a collapse in confidence in Credit Suisse. The FT reported that deposit outflows from the bank topped CHF10bn ($10.8bn) a day late last week as fears for its health mounted.

  • Here’s Patrick Boyle on how Credit Suisse brought itself low:

    One big take-away: It wasn’t bad investments per se that wrecked confidence in the bank, it was involvement in a series of scandals, as they have “a strong, liquid balance sheet.” “Credit Suisse has instead been plagued by repeated scandals. From spying on a former employee, a criminal conviction for allowing drug dealers to launder money, a massive leak of client data to the media, Archegos, Greensill, Mozambique ‘tuna bonds,’ the list is too long.”

    Wait, Mozambique Tuna Bonds? Yeah, it’s a real scandal.

    UK courts are at the heart of a spate of litigation arising out of the Mozambique “Tuna bond” or “hidden debt” scandal. The scandal involved $2 billion of bank loans and bond issues from Swiss bank Credit Suisse and Russian bank VTB. The bank loans were taken out in secret by Mozambican state-owned companies, without the legally required approval of the Mozambique Parliament and backed with hidden government guarantees.

    The loans were intended to finance contracts between the state companies and a Lebanese-UAE based ship builder, Privinvest, between 2013-2016 for three maritime projects. These projects were intended to boost maritime security and develop the country’s fishing industry. However, a 2017 audit by Kroll found that $500 million of loans could not be accounted for and that Privinvest may have over-inflated prices by $713 million. The audit also found that $200 million of the loans were spent on bank fees and commissions.

    So it turns out that Mozambique’s political and business elites are at least as corrupt as our own political and business elites.

    Good to know.

    Ironically, according to Boyle, the reason European banks may be in better shape than our own is because they had to deal with the fallout of the Euro crisis. “This is not because European banks are very good — it is precisely because they have historically been quite bad.”

    Practically every banking regulation in existence commemorates a time when things went badly wrong, and Europe spent a decade toughening up banking regulation because it went through a rolling multiyear euro crisis. The European regulators have a detailed set of standards for testing interest rate risk, with the idea that they will be applied to every significant bank in Europe. Unrealized losses are not ignored under this regime and the global Basel standards on stable funding are applied across the entire banking sector. This is quite different to the regulations applied to community banks in the United States who lobbied the government for regulatory exemptions over the years.

    “The economist Matthew Klein argued in a blog post that banks today can be seen as speculative investment funds grafted on top of critical infrastructure, and that this structure is designed to extract subsidies from the rest of society by threatening civilians with crises if the banks’ bets are ever allowed to fail.”

  • Was Credit Suisse infected with the radical transexual social justice warrior madness as the rest of our elites? Of course they were:

    

    (Hat tip: Stephen Green at Instapundit.)

  • Finally, it’s a chance to embed the Swiss Banker Song from Making Fiends.

    LinkSwarm For March 17, 2023

    March 17th, 2023

    Another packed week with no time for a big LinkSwarm!

  • “Biden Family Members Paid by Chinese Firm with Ties to CCP.”

    A Chinese company based out of Hong Kong which paid at least $3 million to several members of the Biden family has since been revealed to have ties with the ruling Chinese Communist Party (CCP).

    According to the Daily Caller, State Energy HK Limited sent $3 million via wire transfer to Robinson Walker LLC, a company run by an associate of the Biden family named John Robinson Walker. The wire transfer took place in March of 2017, shortly after Joe Biden’s term as Vice President came to an end, according to a report released on Thursday by the House Oversight Committee.

    One of the direct subsidiaries of State Energy HK is State Energy Group International Assets Holdings Limited (SEIAH). At the time of the wire transfer, SEIAH’s chairman was Ren Qingxin, who previously worked for the CCP as a representative at a business organization.

    Shortly after the $3 million transfer, Ren was succeeded in his leadership position by Lei Donghui, who had been a member of the CCP since 2002, where he served as Secretary General of the International Engineering Business Bureau of China State Construction (CSC). CSC has since been designated by the Department of Defense as a “Communist China military company.”

    Subsequently, the $3 million sent to Robinson Walker was then transferred to four different members of the Biden family: Joe Biden’s son Hunter, brother James, daughter-in-law Hallie, and a fourth unidentified family member, the Oversight Committee reports. The transfers were sent in several transactions, both to the family members directly and to several of their companies, including Owasco PC, JBBSR Inc, and RSTP II, LLC.

    The previously-unknown involvement of Hallie – the widow of Biden’s elder son Beau, who later became Hunter’s girlfriend after Beau’s death – has proven to be one of the biggest bombshells yet in the GOP’s investigations into Biden family corruption.

  • Arrest Warrant Issued For President Putin By Hague-Based ICC.” Maybe ICC can hire Dog the Bounty Hunter…
  • Truth:

    (Hat tip: Not The Bee.)

  • DeSantis administration revokes Hyatt Regency Miami alcohol license after it hosted “A Drag Queen Christmas” in front of children.
  • Dutch Farmer’s Party poised to win 16 or 17 seats in parliament thanks to opposing that country’s mad global warming anti-meat mandates. “The Boer-Burger Beweging (BBB), or Farmer-Citizen Movement, is set to become the largest party in the country’s senate, winning more seats than Prime Minister Mark Rutte’s ruling conservative VVD party.”
  • Baltimore Democrats want to decriminalize murder for anyone under age 25. Evidently they’re jealous that New Orleans took their crown as murder capital…

  • Red Guards come to Maine. “Kristen Day said students affiliated with one of RSU 14’s Civil Rights Teams harassed her daughter. When her daughter refused to speak about her sexuality, two students affiliated with the club began to bully her and call her homophobic.” (Hat tip: Stephen Green at Instapundit.)
  • Oklahoma State Rep. Regina Goodwin: “‘DEI’ as in ‘deity.’ Diversity, Equity, and Inclusion is god!”
  • Roy McGrath, the ex-Chief of Staff for former Maryland Governor Larry Hogan, is evidently still on the run after an indictment on wire fraud charges. (Hat tip: Dwight.)
  • Eric Weinstein on Joe Rogan about what really happened with Kayne West. He suggests that West’s Hitler comments were simply him trying to channel Thomas à Kempis.
  • Tiger Woods’ girlfriend is told to pack for a short vacation…at which point he locks her out of his mansion and said she’s not allowed to return. Cold. Also effective.

    Cue up the Bill Burr rant about “gold digging whores.”

  • The first rule of cemetery machete fight club is you don’t talk about cemetery machete fight club. The second rule is you don’t drive over the headstones.
  • Man lives in a tiny house in a dumpster in London. Sadly, his name’s not Oscar.
  • Cockatootle doo.
  • The Nightmare Before St. Patrick’s Day.
  • More On How SVB Screwed The Pooch

    March 16th, 2023

    I wasn’t planning on writing more about the collapse of Silicon Valley Bank, but too much info has been coming down the pike to ignore. Plus, I found the video below, and felt I had to share it.

    First up: Silicon Valley Bank donated nearly $74 million to #BlackLivesMatter and associated causes.

    A newly published database from the Claremont Institute has revealed that the since-collapsed Silicon Valley Bank donated or pledged to donate nearly $74 million to the Black Lives Matter movement and related causes.

    In an August 2020 Diversity, Equity & Inclusion report, SVB declared “we are on a journey committed to increasing diversity, equity and inclusion (DEI) in our workplace, with our partners and across the innovation economy.”

    The bank revealed that they had donated $1.6 million to “causes supporting gender parity in innovation,” as well as $1.2 million to support “opportunities for diverse, emerging talent in innovation.”

    In SVB’s 2021 Proxy Statement, the bank wrote in relation to racial and social equity that “the calls to end systemic racial and social inequities following the murder of George Floyd in May 2020 had a profound global impact.”

    “We responded by expanding opportunities for dialogue, including hosting over 40 small group ‘Conversation Circles’ in which over two thirds of our employees participated in discussions about racial equity issues.”

    The statement continued to say that the bank’s “DEI-focused ‘town hall’ meetings for employees were in response to our recognition of the need for greater transparency and dialogue around the racial representation of our workforce and the innovation ecosystem.”

    In addition, the bank, provided “opportunities for action, mobilizing our employees and clients to join in community service through Tech Gives Back, a week of volunteer events focused in part on racial equity, social justice and access to the innovation economy,” and partnered with “Act One Ventures to launch The Diversity Term Sheet Rider for Representation at the Cap Table initiative, which advocates for venture capital firms to include in all of their term sheets a pledge to bring members of underrepresented groups into deals as co-investors.”

    A 2020 letter from CEO Greg Becker stated, “In recent months, we’ve expanded our philanthropic giving through corporate donations and employee matching programs. These programs focus on pandemic response, social justice, sustainability and supporting women, Black and Latinx emerging talent and other underrepresented groups. You’ll find examples of these programs in this report, ranging from workforce development to affordable housing.”

    In 2020, the bank launched its Missions program, “a software platform designed to engage employees to act in support of the causes they care about most such as voter education and racial justice and equity,” which saw employees donate $400,000 for “justice and equity for Black Americans.”

    According to the Claremont Institute, an additional $250,000 was allocated by the SVB Foundation to support grants for social justice organizations including the NAACP, ACLU, and National Urban League.

    SVB additionally partnered with 44 organizations focused on furthering DEI in innovation and invested in relationships with historically black colleges and universities, and hosted internships and provided tuition assistance for students from “underserved communities.”

    In a Corporate Responsibility Report from 2021, SVB pledged to donate $50M in its diversity and inclusion programs and partnerships, “with a focus on women, Black and Latinx individuals.”

    In May of 2021, SVB announced a proposed five-year, $11.2 billion community benefits plan in collaboration with The Greenlining Institute, an M4BL, or Movement For Black Lives, member. The Claremont Institute wrote that “that plan includes $75M in unspecified charitable contributions (also not included in our total).”

    Social Justice is bad enough by itself, but it’s also a marker for those incapable of thinking clearly enough to focus clearly on their main jobs.

    And now this video, which slams “Stupid Valley Bank” for its egregious stupidity and slams It’s Pat, which is these days is almost like a Hispster move (“It’s a pretty obscure bad movie, you’ve probably never heard of it”).

    He also thinks the crisis is just beginning…