According to USA Today, both the Democratic National Committee (DNC) and the presidential campaign of President Joe Biden said on Friday that they will refund political donations that were associated with the collapse of Silicon Valley Bank.
Following the failure of the bank a week ago, the Democratic National Committee assured the magazine that the money would be refunded, according to Breitbart News.
The statement was made on the same day that the bank's parent company, SVB Financial Group, submitted a petition for protection under Chapter 11 in the bankruptcy court located in New York.
USA Today was informed by a representative for the Democratic National Committee that both Joe Biden's presidential campaign in 2020 and the DNC will give any donations received from SVB CEO Greg Becker and the bank's managing director, Gerald Brady, in 2020 or later.
According to USA Today, SVB executives including Brady and Claire Lee, who recently took over one of Brady's roles running a division of the bank, contributed at least $11,900 to Joe Biden's presidential campaign and aligned political action committees (PACs).
Brady is the former brand ambassador and head of startup banking at SVB. In addition, the Democratic National Committee solicited and received a minimum contribution of $32,250 from former SVB executives Brady and Lee throughout the course of their careers.
In addition, it was mentioned in the report that Becker contributed $2,800 to Biden's campaign while Brady contributed $5,500.
Moreover, Brady contributed $12,050 to the Democratic National Committee (DNC). According to reports, Joe Biden's campaign for the presidency will repay $8,400, while the Democratic National Committee will return $12,050.
The failure of Silicon Valley Bank occurred a week ago when customers suddenly withdrew tens of billions of dollars after the bank announced a loss of approximately $1.8 billion from selling its investments in U.S. treasuries and mortgage-backed securities.
This caused customers to panic, and the bank was unable to recover from the situation.
In the end, authorities were forced to close Silicon Valley Bank, and the Federal Deposit Insurance Corporation (FDIC) seized ownership of the bank, stating that they would preserve insured money within their jurisdiction.
The United States Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) made an announcement the previous Sunday that they would be taking "decisive actions to protect the U.S. economy by strengthening public confidence in [the U.S.] banking system."
These "decisive actions" consisted of making deposits that were above the FDIC's limit of $250,000 available the following Monday.
There was going to be another effort to sell the bank through an auction this coming Friday, according to several sources; however, the sale of the bank did not go through the previous weekend due to the fact that none of the top banks in the United States placed a bid.