Democratic California Gov. Gavin Newsom praised the Biden administration’s decision to bail out Silicon Valley Bank (SVB), but he failed to mention his ties to the now-defunct institution, which holds at least three of his wine companies and reportedly has other financial connections to his family.
“The Biden Administration has acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system,” Newsom said in a statement Sunday. “Their actions this weekend have calmed nerves, and had profoundly positive impacts on California.
“California is a pillar of the American economy, and federal leaders did the right thing, ensuring our innovation economy can continue to grow and move forward.”
Democratic California Gov. Gavin Newsom praised the Biden administration’s decision to bail out Silicon Valley Bank but failed to mention his ties to the now-defunct institution. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
According to a report by The Intercept, President Biden’s decision to bail out the bank protects Newsom’s wine companies — CADE, Odette and PlumpJack — which the bank lists as clients on its website.
Additionally, the outlet reported that Newsom’s wife, Jennifer Siebel, founded a charity called the California Partners Project that received $100,000 from SVB in 2021 at Newsom’s request. It also reported that the president of SVB Capital, John China, was a founding member of the charity’s board of directors.
A longtime former employee of Newsom’s who handled his finances reportedly told the outlet the governor also kept personal accounts with SVB a number of years.
A customer stands outside a shuttered Silicon Valley Bank headquarters March 10, 2023, in Santa Clara, Calif. (Justin Sullivan/Getty Images)
SVB, which was the 16th largest bank in the U.S., was taken over by the Federal Deposit Insurance Corporation Friday when it didn’t have enough cash on hand to cover withdrawals by its depositors amid a run on the bank. It was the second-biggest bank failure in U.S. history and the largest since Washington Mutual went under in 2008.
Biden reiterated Monday that the federal government would guarantee depositors at the banks access to their funds but that no such protection would be offered to the bank’s investors. His administration has also fired the leadership at both banks.
President Biden speaks about the U.S. banking system March 13, 2023, in the Roosevelt Room of the White House in Washington, D.C. (Saul Loeb/AFP via Getty Images)
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Newsom’s office did not immediately respond to Fox News Digital’s request for comment. However, a spokesperson told The Intercept, “Governor Newsom’s business and financial holdings are held and managed by a blind trust, as they have been since he was first elected governor in 2018.”
Fox News’ Chris Pandolfo and Anders Hagstrom contributed to this report.
