Senate Majority Leader Chuck Schumer and Democratic California Rep. Maxine Waters are returning political donations linked to Silicon Valley Bank (SVB) in the wake of its collapse.
Sen. Schumer, a Democrat from New York, is returning small donations from former SVB CEO Greg Becker and the bank’s Political Action Committee (PAC), CNBC reported Tuesday. Schumer received $5,800 from Becker in 2021 and $2,700 from SVB’s PAC in 2015, FEC records show. He will be giving the funds to New York based charities, a spokesperson told CNBC. (RELATED: Failed California Bank Was Major Donor, Supporter To Newsom Family Nonprofit)
Scoop: Rep. Maxine Waters, ranking member of the House Financial Services committee, is returning a campaign donation from Silicon Valley Bank w/ @jsscppr @hollyotterbein https://t.co/iJrQufOk2X
— Hailey Fuchs (@Hailey_Fuchs) March 14, 2023
Likewise, SVB’s PAC gave $2,500 to Rep. Waters in 2020, when she chaired the House Financial Services Committee. Waters told Politico she is returning the donation, without offering specifics. She recalled speaking to an SVB representative about financial technology in 2020, but she could not recall the details of the meeting.
SVB’s PAC donated more than $50,000 to Democratic and Republican campaigns from 2017-22. The top recipients of its donations were Democratic Virginia Sen. Mark Warner and Republican North Carolina Rep. Patrick McHenry, who chairs the House Financial Services Committee, Politico reported. They each received $7,500 from the PAC over the six year time period.
Sen. Warner also received $5,800 from Becker in May 2022, FEC records indicate. He serves on the Senate Finance Committee and is not up for reelection until 2026.
Silicon Valley Bank was seized by regulators Friday after it quickly collapsed earlier in the week. Regulators announced a plan to bail out depositors Sunday and continue to auction the bank to potential buyers. The bank’s exposure to long term treasuries led to significant losses because of the Federal Reserve’s interest rate hikes, leading to its downfall. It became the largest financial institution to fail since the 2008 financial crisis.