Following the collapse of Silicon Valley Bank (SVB) last week, Fox News reported that President Joe Biden announced his administration would secure the deposits of its customers.
Biden’s decision was welcomed by many top Democrats, including California Gov. Gavin Newsom. Yet as Fox News pointed out, Newsom didn’t mention the fact that he benefited from the move.
Governor hails president for having “acted swiftly and decisively”
The governor issued a statement on Sunday in which he praised Biden for having “acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system.”
Newsom went on to say that the president’s “actions this weekend have calmed nerves, and had profoundly positive impacts on California.”
He added that Biden’s policy ensures mall businesses can continue making payroll, workers will receive their salaries, nonprofits will remain open, and construction on affordable housing projects can continue.
“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,” he concluded.
SVB provided $100,000 to California first lady’s charity at governor’s request
However, Fox News noted that Newsom did not reference how SVB gave $100,000 at his request to the California Partners Project, a nonprofit entity founded by California First Lady Jennifer Siebel.
Also of interest is that president of SVB Capital John China is one of the California Partners Project’s original board members.
Meanwhile, a former longtime employee of Newsom told Fox News that the governor kept personal accounts at SVB for years.
What’s more, The Intercept reported that three wineries owned by Newsom, CADE, Odette, and PlumpJack, were also listed as clients on SVB’s website.
Critics want to know the extent of Newsom’s financial ties to SVB
While Newsom’s office did not provide a request to Fox News, a spokesperson for the governor did speak with 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,” the spokesperson said.
Some observers remained skeptical, including former Trump administration Acting Director of National Intelligence Richard Grenell, who asked questions about the financial relationship between Newsom and members of his family.
. @GavinNewsom gets a bail out from @JoeBiden.
How much money did SVB give to Gavin and his wife (and their charities) over the years? https://t.co/2jTOxW35NC
— Richard Grenell (@RichardGrenell) March 15, 2023