Business Insider reported that California Governor, Gavin Newsom, failed to disclose his ties with Silicon Valley Bank while lobbying for a bailout. Moreover, the report states that Newsom maintained “substantial personal ties,” to the now-closed financial institution.
Specifically, Newsom is connected to the bank through “personal accounts, three wineries, and his wife’s charity,” according to Insider. Conversely, California laws ban government officials from potentially influencing the decision for which they maintain “a financial interest.”
California Governor Withholds Silicon Valley Bank Connection
According to a report from Business Insider, California Governor Gavin Newsom failed to disclose his ties with Silicon Valley bank while lobbying for a bailout. Moreover, the report noted specific connections between Newsom and the bank in the form of a personal account, “three of his private wineries,” and his wife’s charity.
Ken Klippenstein first reported the connection, noting the personal ties between Newsom and the now-collapsed SVB. Additionally, a former employee with information on Newsom’s financials stated he “maintained personal accounts at SVB for years.”
There is uncertainty as to whether or not Newsom’s personal accounts at the bank were active at the time of its closure. Subsequently, it is uncertain their status while he lobbied for a government bailout of the bank. Conversely, if they were, Newsom would have benefited from government action taken to aid depositors.
Insider notes a statement made by Newsom’s office that had “been in touch with the highest levels of leadership at the White House and Treasury.” Specifically for the intent to help “‘stabilize’ the entire innovation ecosystem that has served as a tent pole for our economy.”
Following governmental interference, Newsom praised the swift action. Simultaneously, the issue relays to the lack of disclosure of his own connectivity to the bank. Thus, breaching California legislation specifically banning the practice.