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US GOP targets Silicon Valley’s ‘woke’ politics in bank rescue backlash

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Happy Tuesday! Send Oscars hot takes to your second favorite tech policy reporter and send news tips to: cristiano.lima@washpost.com.

Below: A consumer advocacy group urges enforcement against Twitter, and a new filing claims social media executives were aware of their platforms’ potential harms to children. First:

GOP targets Silicon Valley’s ‘woke’ politics in bank rescue backlash

The tech sector’s political leanings have emerged as a flash point in the debate over the decision to rescue Silicon Valley Bank from collapse, with Republicans accusing the Biden administration of “bailing out” a “woke” institution with ties to liberal policy initiatives.

Federal regulators announced Sunday that depositors at the bank — known for serving venture capitalists and start-ups from the technology industry — would still have access to their funds after its crash triggered fears of a broader economic downturn, as my colleagues reported.

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President Biden said in a televised address early Monday that the actions by financial regulators mean that small businesses “can breathe easier knowing they’ll be able to pay their workers and pay their bills, and their hard-working employees can breathe easier as well.”

But the decision to aid one of Silicon Valley’s biggest banks is drawing blowback from conservatives, who have long accused Democrats of being too cozy with the tech sector, even as party leaders have pushed for tighter regulation.

House Oversight Committee Chair James Comer (R-Ky.) criticized the move in an interview with Fox News on Sunday, calling Silicon Valley Bank “one of the most woke banks” for embracing considering social, environmental and corporate governance factors in investing — an approach that has become a common target of conservative ire.

Sen. Roger Marshall (R-Kan.) suggested that federal regulators were seeking to “bail out Silicon Valley billionaires.” Rep. Virginia Foxx (R-N.C.) called it a “woke Silicon Valley bailout.” Rep. Darrell Issa (R-Calif.) tweeted that “Biden is bailing out one of Big Tech’s favorite banks.”

Rep. Matt Gaetz (R-Fla.) took the critique a step further, suggesting in a tweet that the move served to benefit Democratic political donors in Silicon Valley.

The Treasury Department referred a request for comment to a joint interagency statement saying the response “will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses.”

The rebukes highlight how appearing to lock arms with Silicon Valley can be politically hazardous in Washington, even during significant economic upheaval.

And it follows a broader trend of Republicans attacking Democrats over allegations they are catering to the whims of leaders in Silicon Valley, and vice versa.

Comer’s remarks drew backlash online after it was revealed that an investment firm led by Peter Thiel, PayPal co-founder and a major Republican donor, withdrew millions of dollars from Silicon Valley Bank as it spiraled downward last week, according to Bloomberg News.

Twitter chief Elon Musk, another prominent GOP ally in the tech sector, separately suggested last week he was “open to the idea” of buying the bank and folding it into Twitter.

Other GOP officials, meanwhile, have voiced support for the Biden administration’s response.

After federal regulators unveiled their plan on Sunday, Sen. Mitt Romney (R-Utah) tweeted, “Right decision.” House Financial Services Committee Chairman Patrick McHenry (R-N.C.) said in a statement that he has “confidence in our financial regulators and the protections already in place to ensure the safety and soundness of our financial system.”

Biden and other Democratic leaders have responded to the bank’s collapse by renewing calls for more federal guardrails on the financial sector.

The president tweeted Monday that he plans to ask “Congress and banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure happens again.”

And they have taken aim at Republican leaders for leading efforts to loosen banking regulations during the Trump administration, suggesting they could have helped avert a financial crisis.

“During the Obama-Biden Administration, we placed tough requirements on banks to make sure the crisis we saw in 2008 wouldn’t happen again,” Biden said in a post. “Unfortunately, my predecessor rolled some of those back.”

Sen. Elizabeth Warren (D-Mass.), an outspoken critic of the deregulatory push under Trump, wrote in a New York Times op-ed on Monday that the bank’s CEO Greg Becker “was one of the ‌many high-powered executives who lobbied Congress to weaken the law.”

Our top tabs
Consumer group urges FTC, DOJ action on Twitter

Consumer advocacy group Public Citizen wrote a letter to FTC Chair Lina Khan and Attorney General Merrick Garland urging enforcement action against Twitter for alleged violations of its 2011 privacy and security consent decree.

Public Citizen asked if Twitter filed a sworn compliance notice with the FTC after Elon Musk acquired the platform in October, as well as whether the Justice Department and FTC believe Twitter still maintains a comprehensive privacy and security framework after a mass layoff of data governance and security staff.

The FTC for months has been investigating Twitter as part of a broader probe into the company’s privacy practices, following a whistleblower complaint accusing the company of violating a 2011 settlement and letting several security processes lapse.

More recently, the investigation has expanded following Musk’s takeover as the layoffs of key staff may affect the company’s ability to uphold privacy requirements for the FTC. Following the departure of a key Twitter moderation and safety executive in November, the FTC said it was “tracking recent developments at Twitter with deep concern.”

FTC spokesperson Doug Farrar said they received the letter but declined additional comment. The Justice Department did not return a request for comment.

Meta aware of harm to young users, filing claims

New claims unveiled in a court filing suggest employees at Meta and ByteDance were warned of their platforms’ harms to children and teenagers but disregarded or undermined them, including Meta CEO Mark Zuckerberg, Bloomberg News’s Joel Rosenblatt reports.

The claims were made previously but were redacted from public view, Rosenblatt writes. The filing is one of many in Oakland, Calif., that alleges major social media platforms such as Instagram, TikTok, Snapchat and YouTube contributed to depression, anxiety and sleeping disorders among young people.

The new filing shows that TikTok parent ByteDance was aware that its viral challenges were more likely to be tried by young people because of their inability to fully form and process risks. Similarly, the filing shows Zuckerberg was warned of these issues on Facebook and Instagram, and that the problems “will follow us into the Metaverse,” the report says.

The unsealed filing also claims that Meta defunded its mental health team instead of investing further resources into addressing children’s use of Instagram.

Meta in the report said the details surrounding the investments into children’s mental health are false, while representatives from Snap and TikTok did not return a request for comment.

Signature Bank collapse likely to increase regulator scrutiny of crypto

The collapse of Signature Bank, which is based in New York, is poised to turn regulators’ heads, our colleagues Pranshu Verma and Jacob Bogage report.

Signature Bank’s collapse, due in part to the collapse of Silicon Valley Bank last week, is a symbolic blow to the digital assets industry because the institution helped provide legitimacy to the cryptocurrency world, experts told Pranshu and Jacob.

“It’s very dark days at present for crypto,” said Yesha Yadav, who studies digital financial regulation and is an associate dean at Vanderbilt University Law School in the report.

The Federal Deposit Insurance Corporation intervened to protect the bank’s clients’ assets, though the impact on other operations in the bank remains unclear due to Signature’s large presence in processing cryptocurrency transactions.

Rant and rave

The debate continues over whether the Silicon Valley Bank rescue was a bailout. Our colleague Jeff Stein:

New York Times financial columnist Andrew Ross Sorkin:

Bill Ackman, CEO of Pershing Square Capital Management:

Agency scanner

Court revives Apple, Google challenge to U.S. patent-review policy (Reuters)

Inside the industry

ChatGPT and generative AI are booming, but the costs can be extraordinary (CNBC)

Microsoft strung together tens of thousands of chips in a pricey supercomputer for OpenAI (Bloomberg News)

Competition watch

Qualcomm looks to Europe court again to overturn antitrust fine (Reuters)

DOJ has eyes on AI, antitrust chief tells SXSW crowd (Axios)

Workforce report

Here are the Meta jobs expected to be cut (Naomi Nix)

Silicon Valley Bank customers breathe sigh of relief as they access accounts (Rachel Lerman and Lisa Bonos)

HSBC rescues British arm of stricken Silicon Valley Bank (Reuters)

  • Julia Pollak, chief economist at ZipRecruiter, and Nicholas Bloom, professor of economics at Stanford University, join Washington Post Live at 11 a.m. for The Post’s “Tech at Work” series to discuss how employees and companies can thrive in hybrid workplaces.
  • Matthew Gentzkow, Landau Professor of Technology and the Economy at Stanford University, speaks about digital addiction at the Stanford Cyber Policy Center at 3 p.m.
  • The Wall Street Journal commences its CIO Network Summit in Palo Alto, Calif., beginning at 11 a.m.
Before you log off

That’s all for today — thank you so much for joining us! Make sure to tell others to subscribe to The Technology202 here. Get in touch with tips, feedback or greetings on Twitter or email.

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Politics Briefing: Labour leader targets Poilievre, calls him 'anti-worker politician' – The Globe and Mail

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Hello,

Pierre Poilievre is a fraud when it comes to empowering workers, says the president of Canada’s largest labour organization.

Bea Bruske, president of the Canadian Labour Congress, targeted the federal Conservative Leader in a speech in Ottawa today as members of the labour movement met to develop a strategic approach to the next federal election, scheduled for October, 2025.

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“Whatever he claims today, Mr. Poilievre has a consistent 20-year record as an anti-worker politician,” said Bruske, whose congress represents more than three million workers.

She rhetorically asked whether the former federal cabinet minister has ever walked a picket line, or supported laws to strengthen workers’ voices.

“Mr. Poilievre sure is fighting hard to get himself power, but he’s never fought for worker power,” she said.

“We must do everything in our power to expose Pierre Poilievre as the fraud that he is.”

The Conservative Leader, whose party is running ahead of its rivals in public-opinion polls, has declared himself a champion of “the common people,” and been courting the working class as he works to build support.

Mr. Poilievre’s office today pushed back on the arguments against him.

Sebastian Skamski, media-operations director, said Mr. Poilievre, unlike other federal leaders, is connecting with workers.

In a statement, Skamski said NDP Leader Jagmeet Singh has sold out working Canadians by co-operating with the federal Liberal government, whose policies have created challenges for Canadian workers with punishing taxes and inflation.

“Pierre Poilievre is the one listening and speaking to workers on shop floors and in union halls from coast to coast to coast,” said Mr. Skamski.

Prime Minister Justin Trudeau and Mr. Singh are scheduled to speak to the gathering today. Mr. Poilievre was not invited to speak.

Asked during a post-speech news conference about the Conservative Leader’s absence, Bruske said the gathering is focused on worker issues, and Poilievre’s record as an MP and in government shows he has voted against rights, benefits and wage increases for workers.

“We want to make inroads with politicians that will consistently stand up for workers, and consistently engage with us,” she said.

This is the daily Politics Briefing newsletter, written by Ian Bailey. It is available exclusively to our digital subscribers. If you’re reading this on the web, subscribers can sign up for the Politics newsletter and more than 20 others on our newsletter signup page. Have any feedback? Let us know what you think.

TODAY’S HEADLINES

Pierre Poilievre’s top adviser not yet contacted in Lobbying Commissioner probe: The federal Lobbying Commissioner has yet to be in touch with Jenni Byrne as the watchdog probes allegations of inappropriate lobbying by staff working both in Byrne’s firm and a second one operating out of her office.

Métis groups will trudge on toward self-government as bill faces another setback: Métis organizations in Ontario and Alberta say they’ll stay on the path toward self-government, despite the uncertain future of a contentious bill meant to do just that.

Liberals buck global trend in ‘doubling down’ on foreign aid, as sector urges G7 push: The federal government pledged in its budget this week to increase humanitarian aid by $150-million in the current fiscal year and $200-million the following year.

Former B.C. finance minister running for the federal Conservatives: Mike de Jong says he will look to represent the Conservatives in Abbotsford-South Langley, which is being created out of part of the Abbotsford riding now held by departing Tory MP Ed Fast.

Ottawa’s new EV tax credit raises hope of big new Honda investment: The proposed measure would provide companies with a 10-per-cent rebate on the costs of constructing new buildings to be used in the electric-vehicle supply chain. Story here.

Sophie Grégoire Trudeau embraces uncertainty in new memoir, Closer Together: “I’m a continuous, curious, emotional adventurer and explorer of life and relationships,” Grégoire Trudeau told The Globe and Mail during a recent interview. “I’ve always been curious and interested and fascinated by human contact.”

TODAY’S POLITICAL QUOTES

“Sometimes you’re in a situation. You just can’t win. You say one thing. You get one community upset. You say another. You get another community upset.” – Ontario Premier Doug Ford, at a news conference in Oakville today, commenting on the Ontario legislature Speaker banning the wearing in the House of the traditional keffiyeh scarf. Ford opposes the ban, but it was upheld after the news conference in the provincial legislature.

“No, I plan to be a candidate in the next election under Prime Minister Trudeau’s leadership. I’m very happy. I’m excited about that. I’m focused on the responsibilities he gave me. It’s a big job. I’m enjoying it and I’m optimistic that our team and the Prime Minister will make the case to Canadians as to why we should be re-elected.” – Public Safety Minister Dominic LeBlanc, before Question Period today, on whether he is interested in the federal Liberal leadership, and succeeding Justin Trudeau as prime minister.

THIS AND THAT

Today in the Commons: Projected Order of Business at the House of Commons, April. 18, accessible here.

Deputy Prime Minister’s Day: Private meetings in Burlington, Ont., then Chrystia Freeland toured a manufacturing facility, discussed the federal budget and took media questions. Freeland then travelled to Washington, D.C., for spring meetings of the International Monetary Fund and the World Bank Group. Freeland also attended a meeting of the Five Eyes Finance Ministers hosted by U.S. Treasury Secretary Janet Yellen, and held a Canada-Ukraine working dinner on mobilizing Russian assets in support of Ukraine.

Ministers on the Road: Foreign Affairs Minister Mélanie Joly is on the Italian island of Capri for the G7 foreign ministers’ meeting. Heritage Minister Pascale St-Onge, in the Quebec town of Farnham, made an economic announcement, then held a brief discussion with agricultural workers and took media questions. Privy Council President Harjit Sajjan made a federal budget announcement in the Ontario city of Welland. Families Minister Jenna Sudds made an economic announcement in the Ontario city of Belleville.

Commons Committee Highlights: Treasury Board President Anita Anand appeared before the public-accounts committee on the auditor-general’s report on the ArriveCan app, and Karen Hogan, Auditor-General of Canada, later appeared on government spending. Crown-Indigenous Relations Minister Gary Anandasangaree appears before the status-of-women committee on the Red Dress Alert. Competition Bureau Commissioner Matthew Boswell and Yves Giroux, the Parliamentary Budget Officer, appeared before the finance committee on Bill C-59. Former Prince Edward Island premier Robert Ghiz, now the president and chief executive officer of the Canadian Telecommunications Association, is among the witnesses appearing before the human-resources committee on Bill C-58, An act to amend the Canada Labour Code. Caroline Maynard, Canada’s Information Commissioner, appears before the access-to-information committee on government spending. Michel Patenaude, chief inspector at the Sûreté du Québec, appeared before the public-safety committee on car thefts in Canada.

In Ottawa: Governor-General Mary Simon presented the Governor-General’s Literary Awards during a ceremony at Rideau Hall, and, in the evening, was scheduled to speak at the 2024 Indspire Awards to honour Indigenous professionals and youth.

PRIME MINISTER’S DAY

Justin Trudeau met with Ottawa Mayor Mark Sutcliffe at city hall. Sutcliffe later said it was the first time a sitting prime minister has visited city hall for a meeting with the mayor. Later, Trudeau delivered remarks to a Canada council meeting of the Canadian Labour Congress.

LEADERS

Bloc Québécois Leader Yves-François Blanchet held a media scrum at the House of Commons ahead of Question Period.

Conservative Leader Pierre Poilievre attends a party fundraising event at a private residence in Mississauga.

Green Party Leader Elizabeth May attended the House of Commons.

NDP Leader Jagmeet Singh, in Ottawa, met with Saskatchewan’s NDP Leader, Carla Beck, and, later, Ken Price, the chief of the K’ómoks First Nation,. In the afternoon, he delivered a speech to a Canadian Labour Congress Canadian council meeting.

THE DECIBEL

On today’s edition of The Globe and Mail podcast, Sanjay Ruparelia, an associate professor at Toronto Metropolitan University and Jarislowsky Democracy Chair, explains why India’s elections matter for democracy – and the balance of power for the rest of the world. The Decibel is here.

PUBLIC OPINION

Declining trust in federal and provincial governments: A new survey finds a growing proportion of Canadians do not trust the federal or provincial governments to make decisions on health care, climate change, the economy and immigration.

OPINION

On Haida Gwaii, an island of change for Indigenous land talks

“For more than a century, the Haida Nation has disputed the Crown’s dominion over the land, air and waters of Haida Gwaii, a lush archipelago roughly 150 kilometres off the coast of British Columbia. More than 20 years ago, the First Nation went to the Supreme Court of Canada with a lawsuit that says the islands belong to the Haida, part of a wider legal and political effort to resolve scores of land claims in the province. That case has been grinding toward a conclusion that the B.C. government was increasingly convinced would end in a Haida victory.” – The Globe and Mail Editorial Board.

The RCMP raid the home of ArriveCan contractor as Parliament scolds

“The last time someone was called before the bar of the House of Commons to answer MPs’ inquiries, it was to demand that a man named R.C. Miller explain how his company got government contracts to supply lights, burners and bristle brushes for lighthouses. That was 1913. On Wednesday, Kristian Firth, the managing partner of GCStrategies, one of the key contractors on the federal government’s ArriveCan app, was called to answer MPs’ queries. Inside the Commons, it felt like something from another century.” – Campbell Clark

First Nations peoples have lost confidence in Thunder Bay’s police force

“Thunder Bay has become ground zero for human-rights violations against Indigenous Peoples in Canada. Too many sudden and suspicious deaths of Indigenous Peoples have not been investigated properly. There have been too many reports on what is wrong with policing in the city – including ones by former chair of the Truth and Reconciliation Commission Murray Sinclair and former Toronto Police board chair Alok Mukherjee, and another one called “Broken Trust,” in which the Office of the Independent Police Review Director said the Thunder Bay Police Service (TBPS) was guilty of “systemic racism” in 2018. – Tanya Talaga.

The failure of Canada’s health care system is a disgrace – and a deadly one

“What can be said about Canada’s health care system that hasn’t been said countless times over, as we watch more and more people suffer and die as they wait for baseline standards of care? Despite our delusions, we don’t have “world-class” health care, as our Prime Minister has said; we don’t even have universal health care. What we have is health care if you’re lucky, or well connected, or if you happen to have a heart attack on a day when your closest ER is merely overcapacity as usual, and not stuffed to the point of incapacitation.” – Robyn Urback.

Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.

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GOP strategist reacts to Trump’s ‘unconventional’ request – CNN

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GOP strategist reacts to Trump’s ‘unconventional’ request

Donald Trump’s campaign is asking Republican candidates and committees using the former president’s name and likeness to fundraise to give at least 5% of what they raise to the campaign, according to a letter obtained by CNN. CNN’s Steve Contorno and Republican strategist Rina Shah weigh in.


03:00

– Source:
CNN

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Anger toward federal government at 6-year high: Nanos survey – CTV News

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Most Canadians in March reported feeling angry or pessimistic towards the federal government than at any point in the last six years, according to a survey by Nanos Research.

Nanos has been measuring Canadians’ feelings of optimism, satisfaction, disinterest, anger, pessimism and uncertainty toward the federal government since November 2018.

The latest survey found that optimism had crept up slightly to 10 per cent since hitting an all-time low of eight per cent in September 2023.

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However, 62 per cent of Canadians said they feel either pessimistic or angry, with respondents equally split between the two sentiments.

(Nanos Research)

“What we’ve seen is the anger quotient has hit a new record,” Nik Nanos, CTV’s official pollster and Nanos Research founder, said in an interview with CTV News’ Trend Line on Wednesday.

Only 11 per cent of Canadians felt satisfied, while another 11 per cent said they were disinterested.

Past survey results show anger toward the federal government has increased or held steady across the country since March 2023, while satisfaction has gradually declined.

Will the budget move the needle?

Since the survey was conducted before the federal government released its 2024 budget, there’s a chance the anger and pessimism of March could subside a little by the time Nanos takes the public’s temperature again. They could also stick.

The five most important issues to Canadians right now that would influence votes, according to another recent Nanos survey conducted for Bloomberg, include inflation and the cost of living, health care, climate change and the environment, housing affordability and taxes.

(Nanos Research)

With this year’s budget, the federal government pledged $52.9 billion in new spending while promising to maintain the 2023-24 federal deficit at $40.1 billion. The federal deficit is projected to be $39.8 billion in 2024-25.

The budget includes plans to boost new housing stock, roll out a national disability benefit, introduce carbon rebates for small businesses and increase taxes on Canada’s top-earners.

However, advocacy groups have complained it doesn’t do enough to address climate change, or support First Nations communities and Canadians with disabilities.

“Canada is poised for another disastrous wildfire season, but this budget fails to give the climate crisis the attention it urgently deserves,” Keith Brooks, program director for Environmental Defence, wrote in a statement on the organization’s website.

Meanwhile, when it comes to a promise to close what the Assembly of First Nations says is a sprawling Indigenous infrastructure gap, the budget falls short by more than $420 billion. And while advocacy groups have praised the impending roll-out of the Canada Disability Benefit, organizations like March of Dimes Canada and Daily Bread Food Bank say the estimated maximum benefit of $200 per month per recipient won’t be enough to lift Canadians with disabilities out of poverty.

According to Nanos, if Wednesday’s budget announcement isn’t enough to restore the federal government’s favour, no amount of spending will do the trick.

“If the Liberal numbers don’t move up after this, perhaps the listening lesson for the Liberals will be (that) spending is not the political solution for them to break this trend line,” Nanos said. “It’ll have to be something else.”

Conservatives in ‘majority territory’

While the Liberal party waits to see what kind of effect its budget will have on voters, the Conservatives are enjoying a clear lead when it comes to ballot tracking.

(Nanos Research)

“Any way you cut it right now, the Conservatives are in the driver’s seat,” Nanos said. “They’re in majority territory.”

According to Nanos Research ballot tracking from the week ending April 12, the Conservatives are the top choice for 40 per cent of respondents, the Liberals for 23.7 per cent and the NDP for 20.6 per cent.

Whether the Liberals or the Conservatives form the next government will come down, partly, to whether voters believe more government spending is, or isn’t, the key to helping working Canadians, Nanos said.

“Both of the parties are fighting for working Canadians … and we have two competing visions for that. For the Liberals, it’s about putting government support into their hands and creating social programs to support Canadians,” he said.

“For the Conservatives, it’s very different. It’s about reducing the size of government (and) reducing taxes.”

Watch the full episode of Trend Line in our video player at the top of this article. You can also listen in our audio player below, or wherever you get your podcasts. The next episode comes out Wednesday, May 1.

Methodology

Nanos conducted an RDD dual frame (land- and cell-lines) hybrid telephone and online random survey of 1,069 Canadians, 18 years of age or older, between March 31 and April 1, 2024, as part of an omnibus survey. Participants were randomly recruited by telephone using live agents and administered a survey online. The sample included both land- and cell-lines across Canada. The results were statistically checked and weighted by age and gender using the latest census information and the sample is geographically stratified to be representative of Canada. The margin of error for this survey is ±3.0 percentage points, 19 times out of 20.

With files from The Canadian Press, CTV News Senior Digital Parliamentary Reporter Rachel Aiello and CTV News Parliamentary Bureau Writer, Producer Spencer Van Dyke

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