After Silicon Valley Bank was taken over by the FDIC, California Governor Gavin Newsom praised the Biden administration’s decision to intervene on behalf of bank customers.
In a statement Monday, Newsom said that the White House “acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system.”
But according to a report by The Intercept, Newsom did not disclose that SVB also protected his own businesses if they had deposits of more than $250,000.
“CADE, Odette, and PlumpJack, three wineries owned by Newsom, are listed as clients of SVB on the bank’s website. Newsom also maintained personal accounts at SVB for years, according to a longtime former employee of Newsom’s who handled his finances, and who requested anonymity to avoid professional reprisal.”
Additionally, Newsom did not mention his wife’s professional ties to the bank. At Newsom’s request, Sillicon Valley Bank gave $100,000 to The California Partners Project, a charity founded by Jennifer Siebel in 2021.
In 2018, Newsom put his businesses into a blind trust, which are run by his sister and a family friend attorney.