After Years of Lobbying and Donations, Gavin Newsom Stepped In To Sell Biden on Silicon Valley Bank Bailout

Top Democrats get cash from a bank that failed

Gavin Newsom (D.), the California governor, is said to have helped President Joe Biden save Silicon Valley Bank. This comes many years after the bank that failed in California began lobbying for California’s government. Newsom donated to Newsom’s widow.

Newsom convinced Biden that a bailout was needed during a Saturday meeting. Politico reported Monday. In 2021, the California bank gave $100,000 quietly to Jennifer Siebel Newsom’s California Partners Project. Lobbying is in the cards The state’s pension, university, and teacher’s retirement systems. It was the largest gift that the bank made to any California entity in that year.

It seemed to be a wise investment. Newsom issued the following: Statement Just hours after the White House announced the bailout decision, Biden’s administration was praised for its actions “swiftly and decisively to protect the American economy” They praise the bailout and call it a success. “profoundly positive impacts on California.” According to spokesmen, although it is not clear what happened to the bank’s California lobbying campaign, both teachers’ and state workers’ pensions are invested at Silicon Valley Bank to the tunes of $67 million, respectively.

Silicon Valley Bank and Newsoms were a perfect match. California’s first married couple has been criticized for their ethically questionable relationships to donors. Be a good steward of your charity donations When her husband needs something, they can turn to Siebel Newsom’s non-profits. This bank, which was forced to close last week due to insufficient cash, has a history that makes large financial donations to political allies.

Greg Becker, the bank’s CEO, donated $2.5 million to Siebel Newsom in 2012. He also maxed his contributions to Sen. Mark Warner, D., Va.

These are just a few examples of how the Democratic-leaning bank has donated to powerful Democratic politicians. Financial disclosures reveal that employees of the bank’s collapsed financial institution gave over $100,000 to Democrats between 2016 and 2016, including $39,000 to Biden’s presidential campaign. The firm’s employees donated just $7,000 to Republicans during the same period.

Newsom isn’t the only one to receive Silicon Valley Bank donations in support of Biden’s bailout. Warner, who is now a senator from the Senate Banking Committee, issued a statement on Sunday. Statement of appreciation The Biden administration’s move. Schumer published Monday a Joint statement House Minority Leader Hakeem Jeffries is (D.N.Y.), praising Biden’s administration for its taking “swift action to safeguard depositors and maintain confidence in the banking system.”

California Rep. Ro Kanna (D.), who received $500 in 2018 from Becker, was a Vocal proponent Of the Biden administration’s rescue. Silicon Valley Bank employees also donated $550 to the Lincoln Project since 2016. scandal-plagued “Never Trump” PAC.

Newsom solicited the donation directly to his wife’s nonprofit organization through a California program that allows public officers to raise funds from corporate supporters for their preferred charities. John China, a Silicon Valley Bank executive, sits on Siebel Newsom’s California Partners Project board. This project pressures corporations to nominate women to their boards.

California leaders want to save Silicon Valley Bank’s richest depositors. The state’s top 1% earners pay almost half of the state’s taxes. If the bank’s biggest customers lose millions and write off those losses, California’s budget—already facing a major deficit—could suffer a major blow.