As everyone now knows, Silicon Valley Bank was closed Friday by the California Department of Financial Protection and Innovation, with the FDIC in charge of liquidation.
California Governor Gavin Newsom issued a statement Saturday morning in response saying “Over the last 48 hours, I have been in touch with the highest levels of leadership at the White House and Treasury. Everyone is working with FDIC to stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy.”
What Gov. Newsom omitted from that statement is that he and the First Partner are clients of Silicon Valley Bank. The Intercept divulged on Tuesday that the that Newsom’s wineries, CADE, Odette, and PlumpJack, are clients of SVB, and Newsom had personal accounts at SVB for years.
Wednesday, California Assembly and Senate Minority leaders called for the California Governor to recuse himself from any future involvement in procuring a bank bailout “that could benefit his own financial circumstance:”
Senate Minority Leader Brian W. Jones (R-San Diego) and Assembly Republican Leader James Gallagher (R-Yuba City) today issued a joint statement concerning Governor Newsom’s financial ties with Silicon Valley Bank (SVB) and his involvement with securing a bailout for the failed bank:
“For three days now the media has been reporting story after story of Governor Newsom’s personal, family, and business ties with the Silicon Valley Bank. The San Francisco Chronicle, California Globe, Business Insider, Newsweek and others have all detailed that the Newsom family business empire and associated non-profits are deeply twined with the SVB.
“As chief executive officer of the State of California, the Governor is prohibited from taking administrative or other actions that could benefit his own financial circumstance. Simply putting all your assets in a blind trust a few years ago does not allow Governor Newsom to intercede in a bailout of a bank that he knew he and his family had extensive dealings with.
“There’s the potential for conflict of interest, and the actual perception of conflict of interest – we think the Governor’s action in the SVB matter crossed the line into both areas.
“We call upon Governor Newsom to recuse himself and turn over any further state dealings with the SVB bailout to the Lt. Governor. We also encourage Governor Newsom to voluntarily ask that the Fair Political Practices Commission (FPPC) and/or the State Attorney General review the matter to see if any violations of the law actually occurred.”
Newsom also neglected to say that he and the First Partner have even deeper ties with Silicon Valley Bank – Silicon Valley Bank President of Capital John China gave $100,000 “Behested” gift to the Newsom’s nonprofit, California Partners Project, Open the Books discovered, the Globe reported.
Asking for an investigation by the FPPC and AG into the failed bank and political involvement is also fitting. But don’t hold your breath – the FPPC and State Attorney General’s office were weaponized long ago by Democrats.
At least we have the media to dig into this mess (eye roll).
The Globe wonders aloud why California Assembly and Senate Majority leaders haven’t also called for the governor’s recusal.
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"The Globe wonders aloud why California Assembly and Senate Majority leaders haven’t also called for the governor’s recusal."
I am wondering the same thing. Actually, I suspect that many of the Democrats (perhaps most of them) are also involved with SVB in some way? ;-)
That's it! Most Democrats are probably involved with SVB and they'll never utter a negative word against their hair gel leader Newsom? Most Democrats in the legislature only care about aborting more babies, mutilating more kids with trans surgeries, injecting more kids with experimental shots and brainwashing more kids with CRT!
Yes, TJ. Their leaders in D.C. are admitting this by extricating themselves from SVB political donations: https://justthenews.com/politics-policy/elections/democrat-politicians-disavow-silicon-valley-bank-donations
I have an active investigation open with the FPPC regarding this matter.
COM-03122023-00639
"At least we have the media to dig into this mess (eye roll)."
Don't worry folks, the Sac Bee and the L.A. Times will roll up their sleeves and get to the bottom of this. Not.
Extremely grateful as always that Katy Grimes and the California Globe and maybe a handful of others in this state actually do their jobs and stick their necks out to bring the beyond-outrageous behavior of these bottom-feeders to light.
Only when pigs fly
Recusal or resignation? In less than two days, they attempted to move their plan forward to weaken crypto
and preliminary moves to 'nationalize' banks.. Totally planned, and probably why Biden agreed to drill for oil
in Alaska, to 'nationalize' that as well.... they will fail.
Meanwhile, SVB's uninsured China accounts are being "made whole" by the Biden administration's bailout scam. Looks like the CCP payoffs to the Biden family are coming to fruition. https://www.zerohedge.com/political/watch-yellen-stammers-after-senator-corners-her-bailouts-protecting-ccp-linked-deposits
P.S. And, of course, Biden's scapegoats are the bank managers: https://www.zerohedge.com/political/president-biden-demands-clawbacks-civil-penalties-industry-bans-failed-bank-execs
And then, there's Peter Thiel. He will be "made whole" as well, I presume. https://www.foxbusiness.com/markets/peter-thiel-50m-silicon-valley-bank-shut-down
Depending on the source, Peter Thiel's 2022 net worth is somewhere between $3-$8 billion. So, $50 million would not have been much of a loss for Thiel in the SVB collapse. But as it turned out, Biden bailed out both Thiel and the CCP.