Just days after the bank was shut down by federal authorities, Senate Majority Leader Charles Schumer (D-NY) will donate money raised from the former Silicon Valley Bank CEO and the The organization’s PAC to charities.
According to a source with knowledge of the situation, Schumer would donate the money raised from former Silicon Bank Valley CEO Greg Becker and the bank’s PAC to charities. CNBC’s claim was verified by a spokesperson for Schumer at The Hill on Tuesday.
In June 2021, Becker donated $5,800 to Schumer’s campaign, according to the Federal Election Commission. The bank’s PAC paid Schumer $2,700 during the 2016 election cycle, according to Open Secrets, a nonprofit group that tracks political spending.
According to Politico on Tuesday, Rep. Maxine Waters (D-California) said she would return the $2,500 donation she received from Silicon Valley Bank’s PAC.
The biggest banking meltdown since the 2008 banking crisis was caused by federal authorities’ Friday shutdown of Silicon Valley Bank, which sparked fears in the banking and technology sectors over the weekend. Authorities auctioned off the bank over the weekend and the bank’s customers were free to access their funds from Monday.
A “bridging bank” operated by the Federal Deposit Insurance Corporation (FDIC) acquired Silicon Valley Bank, transferring all of the defunct organization’s deposits to the newly created bank over the weekend. On Tuesday, the CEO of the new bank urged customers to return, saying the organization was “open for business”.