California Gov. Gavin Newsom (D) has yet to explain how the biggest bank failure since the 2008 financial crisis happened on his watch — with Silicon Valley Bank, a California bank, under California regulations.
The federal government stepped in to protect depositors on Sunday, after a run on the bank last week made it insolvent. But it was first seized by the California Department of Financial Protection and Innovation (DFPI).
The Silicon Valley Bank was chartered in California and headquartered in Santa Clara, in the San Francisco Bay Area. In a state with a reputation for over-regulation, however, authorities failed to step in until it was too late.
On Sunday, Newsom issued a press statement welcoming federal intervention to protect the bank’s depositors:
The Biden Administration has acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system. Their actions this weekend have calmed nerves, and had profoundly…
