Gavin Newsom, the Democratic governor of California, reportedly applauded a decision made by the federal government to safeguard depositors at Silicon Valley Bank, but he did not disclose the fact that he is one of those depositors.
On Sunday, Newsom offered admiration to the administration of former President Joe Biden following the announcement made by the federal government that the Federal Deposit Insurance Corporation (FDIC) will pay all depositor losses resulting from the failure of Silicon Valley Bank (SVB).
Due to the fact that FDIC insurance is only guaranteed to cover up to $250,000 per account, the rescue came as a surprise to the largest depositors at SVB.
In a statement released on Sunday, Newsom said that the “Biden Administration has acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system.”
There have been rumors that Newsom is considering a run for the White House in the event that President Joe Biden decides not to seek reelection.
After Newsom’s personal coordination with the White House and other key officials, the decision was made by the FDIC and the administration of Vice President Joe Biden to guarantee all deposits made at Silicon Valley Bank.
Moreover, Newsom has additional connections to SVB.
Jennifer Siebel Newsom, who is married to Newsom, established the California Partners Project, a charitable organization that in 2021 got a grant of one hundred thousand dollars from SVB.
John China, President of SVB Capital, is a member of the board of directors for the charitable organization.
Prior to its failure a week ago, SVB ranked as the 16th largest bank in the United States, with client deposits totaling over 175 billion dollars.
Almost ninety percent of such deposits were in excess of the $250,000 minimum required by the FDIC to receive guaranteed protection.
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