The Blubber

Per The Intercept

California Governor Gavin Newsom has urged the government and the Feds to bail out Silicon Valley Bank after it collapsed. This was done without revealing that he actually had a personal account within the bank.

Gov. Newsom recently praised the Biden administration after measures were taken to help the bank repay its customers. The administration intervened, and the FDIC took over the bank's clients.

The California Governor gave a statement saying that the decision helped protect Americans and would result in stronger confidence in the banking system. He noted that the administration's actions had a positive effect on California as a whole.

Newsom: "Their actions this weekend have calmed nerves, and had profoundly positive impacts on California..."

SVB previously gave $100,000 to the governor's wife, Jennifer Siebel's charity, in 2021 upon Newsom's request. Among SVB's clients included three wineries owned by Newsom. Here are their names.

• CADE
• Odette
• PlumpJack

Per a former employee,  the Governor had a personal account with the collapsed bank for years. Before becoming mayor, Newsom was asked if he would give up his companies, and in response, he said that he couldn't sell them, per CBS News.

Newsom: “These are my babies, my life, my family. I can’t do that. I can’t sell them.”

Instead, the California governor said he would make a blind trust and give control to Shyla Hendrickson, a family friend, and attorney. His sister became the president of PlumpJack Group, which controls Newsom's hotels, wineries, bars, restaurants, and liquor stores.

It was revealed that Silicon Valley Bank didn't have a Chief Risk Officer from April 2022 to January 2023, nine months in a row. Insiders at SVB reportedly sold over $84 million worth of stock over the past two years.

See flow at unusualwhales.com/flow.

Other News:

• Silicon Valley Bank had no Chief Risk Officer for 9 months, from April 2022 until January 2023
• Insiders at Silicon Valley Bank sold more than $84 million worth of stock just over the past two years

Resources:

The Intercept

California Government