In recent news, there was a significant development involving Silicon Valley Bank (SVB). Last Friday, the bank experienced a bank run and was subsequently taken over by the Federal Deposit Insurance Corporation (FDIC). However, just a few days later, California Governor Gavin Newsom praised the Biden administration for their quick action in intervening to protect the American economy and instill confidence in the banking system. What Governor Newsom didn’t mention was that the administration’s intervention also protected his own companies, Cade, Odette, and PlumpJack.
The Biden Administration has acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system. Their actions this weekend have calmed nerves, and had profoundly positive impacts on California. pic.twitter.com/6VbLIq4Lqv
— Office of the Governor of California (@CAgovernor) March 13, 2023
Upon further investigation, it was found that the three wineries owned by Governor Newsom were listed as clients of SVB on the bank’s website. In addition to his business accounts, the governor had also maintained personal accounts at SVB for several years, according to a former employee who handled his finances. The employee requested anonymity to avoid any professional repercussions.
JUST IN: ?? California Governor failed to disclose personal ties to Silicon Valley Bank $SIVB while lobbying for a bailout.
— Watcher.Guru (@WatcherGuru) March 14, 2023
Despite this revelation, Nathan Click, a spokesperson for Governor Newsom, made it clear that the governor’s business and financial holdings were being managed by a blind trust since he was first elected in 2018. While some may still have questions regarding the potential conflict of interest, Governor Newsom’s team maintains that there was no wrongdoing and that the blind trust ensures ethical business practices.
The situation with SVB highlights the importance of the Biden administration’s swift action in protecting the American economy and the banking system. Governor Newsom’s praise for the intervention is understandable, but some may argue that his own financial ties to SVB raise questions about his motives. Regardless, it is clear that the Biden administration’s decision to intervene will have far-reaching implications for the American economy, and its impact will be felt for years to come.