Senate Majority Leader Chuck Schumer (D-NY) has announced that he would be giving away donations that he had received from former Silicon Valley Bank CEO and the institution’s PAC to charities. This announcement came only a few days after federal regulators announced that the bank had collapsed and was being shut down.
According to one source, Schumer would be gifting the donations given to him from former Silicon Bank Valley CEO Greg Becker and the bank’s PAC to charity. This was later reported by the CNBC report to The Hill on Tuesday.
In June 2021, Becker donated $5,800 to Schumer’s campaign, and in the 2016 election, the bank’s PAC also donated $2,700 to the election campaign.
On Tuesday, Rep. Maxine Waters (D-CA) stated that she would return the $2,500 contribution she had received from Silicon Valley Bank’s PAC.
On Friday, federal regulators announced that Silicon Valley bank would be shutting down. This collapse is the greatest bank failure since the 2008 banking crisis. This has led to an increase in concerns about the banking and technology industries over the weekend as regulators auctioned off the bank. As of Monday those with funds in the bank would be able to withdraw them.
Silicon Valley Bank was absorbed by the new Silicon Valley Bridge Bank. This “bridge bank” was operated by the Federal Deposit Insurance Corporation (FDIC) so that all of the deposits could be transferred to the newly formed bank. The CEO of the new bank has called on the bank’s customers to return to the bank on Tuesday.
