Embattled banks SVB, Signature Bank and Credit Suisse have given out $1.2 million to Democratic candidates over the past three election cycles, fundraising data has revealed — while giving less than $750,000 to Republicans over the same period.
The data is revealed in a publicly available overview of donations made by government transparency group OpenSecrets – and shows that all three big banks have spent heavily to ensure their preferred candidates take office.
As of 2016, the banks distributed tens of thousands to various successful Senate campaigns — including those of Montana Majority Leader Chuck Schumer, Joe Manchin and Jon Tester.
Tester was reportedly spotted Monday night cuddling with the law firm of one of SVB’s partners at a posh fundraiser in Palo Alto, days after the bank collapsed – which has since been confirmed as the second largest bank collapse in American history.
Another big beneficiary of the three banks — two of which have collapsed and the third is currently on the brink — was Arizona Sen. Mark Kelly, who on Sunday asked House members if they could censor social media to stop the spread of misinformation prevent breakdowns
As of 2016, the embattled banks distributed tens of thousands to various Senate campaigns — including that of Majority Leader Chuck Schumer — and millions to Democrats in general. Banks also gave nearly $200,000 to Joe Biden’s own campaign in 2020
In contrast, the firms collectively gave nearly $750,000 to Republicans led by Mitch McConnel, including $17,597 to Donald Trump in 2020 after giving the former president $5,516 for his first run in 2016 had
The banks have also donated $89,322 to the Democratic National Committee since 2017 and offered five-figure donations to the reelection campaigns of New York’s Gregory Meeks and Democratic Congressional Campaign Committee chair Sean Patrick Maloney.
California Rep. Brad Sherman also received thousands from the banks, as did Seth Moulton of Massachusetts.
Meanwhile, banks have also spent heavily to ensure Donald Trump’s own 2020 re-election campaign was an unfortunate one, donating a total of $198,926 to Joe Biden’s successful run.
By contrast, the firms combined gave Trump just $17,597 in 2020, after giving the former president – who has since announced new plans for office – $5,516 for his first term in 2016.
In addition, major banks also provided small donations to some pseudo-Republican committees, including the Lincoln Project, offering nearly $10,000 to the anti-Trump organization since its inception in 2019.
The organization, run by former Republicans who felt alienated from Trump, would use those funds in 2020 to thwart the then-president’s re-election.
Democratic Rep. Brad Sherman of California received thousands in donations from the banks
Another big beneficiary of the three banks — two of which have collapsed and the third is currently on the brink — was Arizona Sen. Mark Kelly, who on Sunday asked House members if they could censor social media to stop the spread of misinformation prevent breakdowns
The data comes after both SVB and Signature Bank collapsed in days over the weekend, prompting billions of dollars in losses and investigations into the collapses to be conducted by the Justice Department and SEC.
Both federal agencies announced this week that they will investigate the collapse of Silicon Valley Bank, which was a major bank in the US tech industry.
Two days after SVB’s collapse, as customers flocked to branches to recover deposits in excess of what the bank could pay in its cash reserves, New York-based Signature, which billed itself as one of the major banks that accepted cryptocurrencies are falling.
Successive failures have since rattled the financial landscape and American confidence in the US banking system, which is already making waves.
One of the first victims to emerge in the banking space is renowned Swiss firm Credit Suisse, whose shares hit record lows on Tuesday.
This development came as the bank reported that “certain material weaknesses in our internal controls over financial reporting” had been discovered, leading bank officials to classify analyzes conducted over the past two years as “ineffective”. .
Shortly after the announcement, share prices — and confidence — in the bank suddenly began to fall, with shares falling to $2.50 by Tuesday afternoon.
As of 2016, the banks handed out tens of thousands to various successful Senate campaigns — including that of Sen Rep. Joe Manchin
The banks also donated $89,322 to the Democratic National Committee and offered five-figure re-election campaign donations for Gregory Meeks of New York (pictured).
SVB customers, meanwhile, continue to be upset over their pending deposits – which, if over $250,000, are not covered by the Federal Deposit Insurance Corp. are insured. About 88 percent of all SVB deposits were uninsured, it was reported.
Additionally, news of questionable leadership at both SVB and Signature continues to surface, as it was revealed that only one member of SVB’s board had a career in investment banking, while the others were major Democratic financiers.
Additionally, CEO Gregory Becker and CFO Daniel Beck both sold their shares two weeks before the bank’s panicked customers ran for their money, causing the bank to sell $21 billion of its securities portfolio at a $1.8 billion loss.
As for Signature Bank, the bank was shut down last Friday and taken over by the New York Treasury Department, with the federal regulator saying the takeover was due to a “crisis of confidence” in senior leadership.
A spokesman for the federal agency added on Tuesday that this acquisition was not “crypto-related,” citing the big banks’ ties to the currently volatile foreign exchange market.
SVB customers, meanwhile, continue to be upset over their pending deposits – which, if over $250,000, are not covered by the Federal Deposit Insurance Corp. are insured. About 88 percent of all SVB deposits were uninsured, it was reported.
As for Signature Bank, the bank was shut down last Friday and taken over by the New York Treasury Department, with the federal regulator saying the takeover was due to a “crisis of confidence” in senior leadership
The NYDFS statement further revealed that the bank still had “significant withdrawal requests” over the weekend as customers rushed to recover their deposits on Friday.
The bank has since admitted that depositors withdrew over $10 billion that day.
“The bank failed to provide reliable and consistent data, resulting in a significant crisis of confidence in the bank’s leadership,” the DFS statement said.
“The decision to take possession of the bank and turn it over to the FDIC was made only after it was clear that the bank would not be able to conduct its business in a safe and sound manner Monday.”
“The Department continues to work with federal agencies, alongside other officials, to review and fully investigate the events and hold people accountable.”
Meanwhile, the SVB, which has a new CEO and is now under the control of the Federal Deposit Insurance Corporation, has yet to comment on the probe — as President Biden expressed a desire to find out how the failure happened over the weekend.
“I am determined to hold those responsible for this mess fully accountable and to continue our efforts to strengthen oversight and regulation of larger banks so we don’t get in that position again,” said Biden, 80.
The president – who has benefited most from the bank’s litany of donations from Democrats – reiterated those sentiments in a national address Tuesday morning amid the two ongoing federal probes.
One of the first victims to emerge in the aftermath of the firm’s collapse was renowned Swiss firm Credit Suisse, whose shares hit record lows on Tuesday
Shares were at an all-time low in early trading on Tuesday after the bank admitted it had found “material weaknesses” in its annual report. Credit Suisse posted an $8 billion loss in 2022
In his speech, the President reassured Americans that they can have confidence in the country’s banking system while trying to allay any concerns about the implications of the sudden collapse.
“Americans can have confidence that the banking system is safe,” Biden said in brief remarks from the White House. “Your deposits are there when you need them.
“Small businesses across the country that open accounts with these banks can breathe easier knowing they can pay their workers and pay their bills, and their hard-working employees can breathe easier, too.”
The President said investors, on the other hand, would not be protected and managers of the companies would be fired.
“They knowingly took a risk, and if the risk doesn’t pay off, investors lose their money. That’s how capitalism works,” Biden said.
The president also called for a “full accounting” of what had led to the collapse of not only SVB but also Signature Bank following its takeover by state regulators on Sunday.
He said his office will hold those responsible for the collapse of both companies accountable.
He warned, “No one is above the law.”