California Gov. Gavin Newsom reportedly had substantial personal ties to Silicon Valley Bank.
Reports link Newsom to the bank through personal accounts, three wineries, and his wife’s charity.
California law bans officials from influencing decisions in which they have “a financial interest.”
California Gov. Gavin Newsom lobbied the White House and the Department of the Treasury about the pending bailout of Silicon Valley Bank, even as three of his private wineries had apparently been among the bank’s clients, according to a Tuesday report by Ken Klippenstein of the Intercept.
According to Klippenstein’s reporting, Newsom’s personal relationship with SVB went beyond the wineries. One anonymous former employee who handled Newsom’s finances told Klippenstein that Newsom “maintained personal accounts at SVB for years.”
It is unclear whether those personal accounts were still active at the time of the bank’s collapse last week. If they were, Newsom could have stood to benefit directly from the Biden administration’s rescue package, which will reimburse SVB account holders even if their balances surpass the $250,000 limit insured by Federal Deposit Insurance Corporation.
Silicon Valley Bank’s implosion has left many reeling, but internet memes are thriving. It was shut down Friday by federal regulators and is now being mercilessly mocked by some. “Aaaaand its gone”: the quickfire collapse of SVB was captured on social media. The implosion of Silicon Valley Bank may be frightening for tech investors, but it’s been a field day for internet memes. On Friday, Silicon Valley Bank was shut down and taken under the control of the Federal Deposit Insurance Corporation, or FDIC. It’s the second-largest bank collapse in US history and the largest since the 2008 financial crisis.Regulations have changed significantly since the Great Depression to offer greater protection to consumers. Even during a recession, you can keep up to $250,000 in an individual bank account and it’ll be protected by FDIC insurance. This generally prevents bank runs, where people get worried about their money and try to withdraw all their cash simultaneously. But Silicon Valley Bank’s situation was quite different.Many of its customers were startups, venture capital firms and tech founders, who likely held more than $250,000 in their accounts, so FDIC insurance wasn’t enough to calm a panic. SVB’s implosion has sent shockwaves through the tech industry and left startup founders scrambling to find emergency loans.Some people – perhaps those not affected by the situation – are seeing the funny side. Take a look at some of the memes produced at Silicon Valley Bank’s expense.
Silicon Valley Bank’s sudden implosion has become meme gold
Silicon Valley Bank’s implosion has left many reeling, but internet memes are thriving.
It was shut down Friday by federal regulators and is now being mercilessly mocked by some.
“Aaaaand its gone”: the quickfire collapse of SVB was captured on social media.
The implosion of Silicon Valley Bank may be frightening for tech investors, but it’s been a field day for internet memes.
On Friday, Silicon Valley Bank was shut down and taken under the control of the Federal Deposit Insurance Corporation, or FDIC.
Regulations have changed significantly since the Great Depression to offer greater protection to consumers. Even during a recession, you can keep up to $250,000 in an individual bank account and it’ll be protected by FDIC insurance.
This generally prevents bank runs, where people get worried about their money and try to withdraw all their cash simultaneously. But Silicon Valley Bank’s situation was quite different.
Many of its customers were startups, venture capital firms and tech founders, who likely held more than $250,000 in their accounts, so FDIC insurance wasn’t enough to calm a panic. SVB’s implosion has sent shockwaves through the tech industry and left startup founders scrambling to find emergency loans.
Some people – perhaps those not affected by the situation – are seeing the funny side. Take a look at some of the memes produced at Silicon Valley Bank’s expense.
Silicon Valley Bank’s sudden implosion has become meme gold
Silicon Valley Bank’s implosion has left many reeling, but internet memes are thriving.
It was shut down Friday by federal regulators and is now being mercilessly mocked by some.
“Aaaaand its gone”: the quickfire collapse of SVB was captured on social media.
The implosion of Silicon Valley Bank may be frightening for tech investors, but it’s been a field day for internet memes.
On Friday, Silicon Valley Bank was shut down and taken under the control of the Federal Deposit Insurance Corporation, or FDIC.
Regulations have changed significantly since the Great Depression to offer greater protection to consumers. Even during a recession, you can keep up to $250,000 in an individual bank account and it’ll be protected by FDIC insurance.
This generally prevents bank runs, where people get worried about their money and try to withdraw all their cash simultaneously. But Silicon Valley Bank’s situation was quite different.
Many of its customers were startups, venture capital firms and tech founders, who likely held more than $250,000 in their accounts, so FDIC insurance wasn’t enough to calm a panic. SVB’s implosion has sent shockwaves through the tech industry and left startup founders scrambling to find emergency loans.
Some people – perhaps those not affected by the situation – are seeing the funny side. Take a look at some of the memes produced at Silicon Valley Bank’s expense.
On Saturday, Newsom’s office issued a statement that Newsom had “been in touch with the highest levels of leadership at the White House and Treasury.” He said the goal was to “stabilize” “the entire innovation ecosystem that has served as a tent pole for our economy.”
The following day, Newsom praised the administration for acting “swiftly and decisively.” Again, there was no mention of his own ties to the bank. Instead, Newsom expressed gratitude on behalf of “small businesses that can now make payroll, workers who will get their paychecks,” and “non-profits that can keep their doors open tomorrow.”
Newsom’s wife, Jennifer Siebel Newsom, happens to be the co-founder of one of those non-profits, California Partners Project. SVB reportedly donated $100,000 to that charity. The former bank’s president is listed as one of the charity’s board members.
The son of an attorney for the Getty Oil dynasty, Newsom’s fundraising prowess and deep ties to California Democrats have put him in the first tier of the party’s future presidential contenders. But as Newsom’s national profile has grown, his privileged background has emerged as a potential Achilles’ heel with voters. During the pandemic, he was photographed dining maskless with a large group of lobbyists at the French Laundry, an exclusive Napa Valley restaurant where foodies pay upwards of $300 a plate. He apologized, and claimed that the seating was outdoors.
Newsom has not discussed his personal ties to SVB publicly. It is unclear whether he disclosed them to the White House or Treasury during his contacts with the administration over the weekend.
As an elected official, Newsom is prohibited by state law from influencing a governmental decision “in which the official knows or has reason to believe the official has a financial interest.”
Nathan Click, a spokesperson for Newsom, told Insider that Newsom’s “business and financial holdings are held and managed by a blind trust,” and have been since he was elected governor in 2018. Click did not respond to detailed questions about the Intercept’s reporting on Newsom’s SVB ties.
Spokespeople for the White House and California Partners Project did not immediately return Insider’s requests for comment.
