California Governor Gavin Newsom hailed Biden’s decision to bail out Silicon Valley Bank – but failed to mention that three of his Napa Valley wineries are listed as the company’s clients.
Newsom’s wife, Jennifer Siebel, also received a $100,000 donation from SVB to her gender equality charity California Partners Project in 2021 – at her husband’s request.
Yet the Democrat didn’t mention any of those financial ties when he issued a statement on Monday saying Biden had “ease the nerves” by promising that every Silicon Valley Bank customer would get their money back in full.
Three of Newsom’s wineries – Cade, Odette and PlumpJack – are listed as clients on SVB’s websites, while sources say he also maintained personal accounts with the bank, according to The Intercept.
Representatives of the politician told the news site that the wineries were placed in a “blind trust”, meaning he was unaware of the holdings within the trust.
Gavin Newsom praised Biden’s decision to bail out Silicon Valley Bank – but failed to mention that three of his Napa Valley wineries are listed as company clients. He is pictured with his wife Jennifer Siebel
Newsom also requested $100,000 in donations from SVB to Siebel’s California Project Partners charity. They are pictured with President Biden in 2021
But Newsom – a millionaire whose business has long come under scrutiny – also ‘demanded’ that four payments worth $25,000 each from Silicon Valley Bank be made to the California Partners Project in 2021.
Behested payments are donations made to a government agency or charity at the request of an elected official.
The practice is rarely rolled out by politicians, but in 2020 Newsom was criticized for demanding exorbitant payments of $226 million.
SVB is still listed as a partner on the California Partners Project website.
John China, chairman of SVB Capital and head of SVB fund management, is also a founding member of the charity and sits on its board of directors.
The charity “advocates for gender equity statewide and safeguards our state’s media and technology industries,” according to its website.
Newsom also allegedly maintained personal accounts with SVB, according to The Intercept magazine which claims to have spoken to an unnamed source who was a longtime employee of the governor and handled his finances.
Siebel’s charity still lists SVB as a partner on its website
Newsom, left, is pictured with Gordon Getty and Oakland Mayor Jerry Brown at his PlumpJack Winery in Oakville in 2004
PlumpJack winery is one of three Newsom companies to be listed as an SVB client
The Odette Estate, pictured, is another of Newsom’s wineries that has ties to the bank
The revelations come after SVB became the biggest bank to fail since the financial crash of 2008.
Federal regulators have since drawn up a plan to secure $175 billion in deposits — though Biden has repeatedly insisted taxpayers won’t pay for a bailout.
Previously, only deposits worth $250,000 were protected by Federal Deposit Insurance, but that cap has now been removed.
On Monday, Newsom hailed the move, saying it had “calmed the nerves”.
“The Biden administration acted quickly and decisively to protect the U.S. economy and bolster public confidence in our banking system.
“Their actions over the weekend have calmed nerves and had profoundly positive impacts on California — on our small businesses who can now do payroll, on workers who will make their paychecks, on affordable housing projects that can continue building and on the non-profit organizations that can keep their doors open tomorrow.
Newsom added on Monday that he had liaised with officials about the collapse.
“Over the past 48 hours, I have been in contact with the highest levels of White House and Treasury leadership,” he said.
The Governor’s affairs have been in the headlines since taking office.
He owns the PlumpJack Group which includes hotels, wineries, bars, restaurants and liquor stores across California.
Silicon Valley Bank became the biggest bank to fail since the 2008 financial crisis last week
During his 2018 election campaign, he was asked if he would sell his businesses to which he replied “These are my babies, my life, my family, I can’t do that”. I can’t sell them.
Instead, he placed them in a blind trust that would be overseen by attorney Shyla Hendrickson.
His sister Hilary Newsom acts as the president of the PlumpJack group.
President Trump also transferred his businesses to a blind trust run by his sons.
Newsom’s team did not immediately respond to a dailymail.com request for comment.
But spokesman Nathan Click told The Intercept: “Governor Newsom’s business and financial assets are owned and managed by a blind trust, as they have been since he was first elected governor in 2018. “
