Only days after federal authorities closed the bank, Senate Majority Leader Charles Schumer (D-NY) will donate money collected from the former CEO of Silicon Valley Bank and the organization’s PAC to charities.
According to a source with knowledge of the situation, Schumer would donate money collected from former Silicon Bank Valley CEO Greg Becker and the bank’s PAC to charities. The CNBC claim was verified by a Schumer spokesperson to The Hill on Tuesday.
In June 2021, Becker gave Schumer’s campaign $5,800, according to the Federal Election Commission. The bank’s PAC contributed $2,700 to Schumer during the 2016 election cycle, according to Open Secrets, a nonprofit group that keeps tabs on political spending.
According to Politico on Tuesday, Rep. Maxine Waters (D-Calif.) stated she will return the $2,500 donation she received from Silicon Valley Bank’s PAC.
The greatest bank collapse since the 2008 banking crisis was caused by the federal authorities’ Friday closure of Silicon Valley Bank, which raised fears in the banking and technology sectors over the weekend. Authorities auctioned off the bank over the weekend, and customers of the bank were free to access their funds as of Monday.
A “bridge bank” run by the Federal Deposit Insurance Corporation (FDIC) acquired Silicon Valley Bank, transferring all deposits from the defunct organization to the newly established bank over the weekend. On Tuesday, the new bank’s CEO urged clients to return, stating that the organization is “open for business.”