Leading politicians have received significant donations from individuals and political action committees connected to the defunct banking organization Silicon Valley Bank.
One of the biggest financial institutions in the US, Silicon Valley Bank, failed last week as customers rushed to withdraw their money. Before the Federal Deposit Insurance Corporation took over the operation of the business, the firm sold a number of long-term corporate and government bonds at a loss in order to finance the deposits.
Senator Mark Warner (D-VA) collected $8,300 from Silicon Valley Bank affiliates during the 2022 midterm election season, according to federal election records provided by Open Secrets, including $5,800 from individuals and $2,500 from the company’s political action committee. According to additional information from Open Secrets, Senate Majority Leader Charles Schumer (D-NY) also collected $5,800 directly from Silicon Valley Bank CEO Greg Becker, the highest permitted individual contribution.
In the 2020 election campaign, Silicon Valley Bank affiliates gave President Joe Biden about $66,700, while the DNC Services Corporation got $21,400.
According to a Fox News investigation, after Silicon Valley Bank fell, Schumer contributed every penny he had received from its affiliates, including a $2,700 gift from the political action committee in 2015. Rep. Maxine Waters (D-CA), who recently chaired the House Financial Services Committee and accepted $2,500 from the political action group in 2020, also took similar measures.
Representatives Josh Harder (D-CA), Gregory Meeks (D-NY), and Senator Raphael Warnock (D-GA) are additional lawmakers who got funding from Silicon Valley Bank affiliates.
Each of the eight registered lobbyists hired by Silicon Valley Bank in 2021 and each of the seven registered lobbyists hired in 2022 had prior experience working for the government, according to Open Secrets. Franklin Square Group, Silicon Valley Bank’s primary lobbying company since 2011, has been against the rules put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act following the 2008 financial crisis.
Wes McClelland served as House Speaker Kevin McCarthy’s senior policy advisor between 2011 and 2015, and Brian Worth served as his director of alliances from 2011 and 2014. Both were former employees of Franklin Square Group. The former had formerly worked as the chief staffer for the House Financial Services Committee and a senior policy advisor to former Rep. John Campbell (R-CA).
Additional Franklin Square Group employees have previously held positions with the Senate Judiciary Committee, the House Energy and Commerce Committee, Rep. Marc Veasey (D-TX), and former Rep. Jay Inslee (D-WA).
To increase “public confidence” in the banking system by ensuring all deposits, the Federal Deposit Insurance Corporation now oversees the holdings still held by Silicon Valley Bank, which California state regulators shuttered on Friday. The majority of the venture-backed technology and healthcare companies that Silicon Valley Bank served had deposits that were above the $250,000 maximum allowed by FDIC insurance.
In a joint statement, FDIC Chairman Martin Gruenberg, Treasury Secretary Janet Yellen, and Federal Reserve Chairman Jerome Powell noted that the banking system “remains resilient and on a solid foundation, in large part thanks to changes that were undertaken during the financial crisis that secured better safeguards for the banking industry.” They promised that “no losses” caused by Silicon Valley Bank’s demise would be “absorbed by the taxpayer.”