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San Francisco Bank, Others Affected by Failure of Silicon Valley Bank

Another Bay Area bank was affected Monday by uncertainty in the financial markets following the failure of Silicon Valley Bank on Friday. Stock in San Francisco-based First Republic Bank sank nearly 62 percent Monday and shares of other regional banks suffered losses, reportedly. On Sunday, regulators seized Signature Bank in New York after it failed.

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Over the weekend and Monday, top federal officials including President Joseph Biden appeared to be getting ahead of the issue. Biden sought to ease American's fears by making all deposits held by Silicon Valley Bank customers available regardless of the amount of their deposits, federal officials said over the weekend.
Over the weekend and Monday, top federal officials including President Joseph Biden appeared to be getting ahead of the issue. Biden sought to ease American's fears by making all deposits held by Silicon Valley Bank customers available regardless of the amount of their deposits, federal officials said over the weekend.

By Keith Burbank
Bay City News

Another Bay Area bank was affected Monday by uncertainty in the financial markets following the failure of Silicon Valley Bank on Friday.

Stock in San Francisco-based First Republic Bank sank nearly 62 percent Monday and shares of other regional banks suffered losses, reportedly.

On Sunday, regulators seized Signature Bank in New York after it failed.

But a San Jose State University professor of finance and accounting does not see the failure of Silicon Valley Bank and Signature Bank as signs of a coming crisis.

“I don’t think it is a huge contagion issue,” said assistant professor Matthew Faulkner. “It’s more toward an isolated incident.”

Over the weekend and Monday, top federal officials including President Joseph Biden appeared to be getting ahead of the issue.

Biden sought to ease American’s fears by making all deposits held by Silicon Valley Bank customers available regardless of the amount of their deposits, federal officials said over the weekend.

That includes businesses who must pay their employees and their bills, officials said.

“Americans can have confidence that the banking system is safe,” Biden said Monday morning. “Your deposits will be there when you need them.”

Investors will not be protected, Biden said. According to the president, they took a risk and “that’s how capitalism works.”

Taxpayers will not be on the hook for the losses. Money to cover the losses will come from fees that banks pay into the deposit insurance fund, Biden said.

In California, state Treasurer Fiona Ma said Monday that her office has no exposure to Silicon Valley Bank and state and local government funds are safe.

Additionally, companies that did business with Silicon Valley Bank won’t have to pay any penalty if they must file their payroll taxes late, according to the California Employment Development Department, which collects payroll taxes.

Employers can request a waiver online at https://edd.ca.gov/en/payroll_taxes/e-Services_for_Business/ or in writing.

Silicon Valley Bank failed Friday after depositors and investors tried to withdraw $42 billion from the bank on Thursday. The bank had $175 billion in deposits at the end of last year. The withdrawals left the bank with a negative cash balance of nearly $1 billion Thursday.

Monday, First Republic Bank said it widened its financial position with liquidity from the U.S. Federal Reserve Bank and JP Morgan Chase and Co.

First Republic now has more than $70 billion to fund operations, the bank’s officials said. Additional liquidity is available through the Bank Term Funding Program, which the Federal Reserve announced Monday and ensures banks can meet the needs of their depositors.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” said Jim Herbert, founder and executive chairman, and Mike Roffler, president and CEO, of First Republic Bank. “First Republic continues to fund loans, process transactions and fully serve the needs of clients.”

U.S. Senate hopeful Rep. Barbara Lee, D-Oakland, blamed the failure of Silicon Valley Bank on the rollback of federal financial regulations by former President Donald Trump.

“Federal oversight over large corporations and our economy is crucial and regulators must once again step in and ensure we do not repeat the mistakes made in 2008,” Lee said in a statement.

Silicon Valley Bank was the 16th largest bank in the United States as of March 10, Faulkner said.

Faulkner suggests depositors open another account, if they have one with more than $250,000 in it, to protect themselves.

Silicon Valley Bank was focused on serving startups, Faulkner said, which was probably part of the reason it failed. But Faulkner said the public only knows part of the story.

 

Copyright © 2023 Bay City News, Inc.  All rights reserved.  Republication, rebroadcast or redistribution without the express written consent of Bay City News, Inc. is prohibited. Bay City News is a 24/7 news service covering the greater Bay Area.

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Activism

The Ladies of Delta Sigma Theta Hold Day of Advocacy at the Capitol in Sacramento

A member of the “Divine Nine,” Delta Sigma Theta Sorority, Inc., was founded on Jan. 13, 1913, at Howard University in Washington, D.C. The organization was established by 22 women who sought to shift the group’s focus from social activities to public service, academic excellence, and social activism.

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Sen. Laura Richardson (D-San Pedro) presents a Senate resolution to the Delta Theta Sigma Sorority Farwest Region at the State Capitol on May 4. Photo courtesy of the Senate Rules Committee.
Sen. Laura Richardson (D-San Pedro) presents a Senate resolution to the Delta Theta Sigma Sorority Farwest Region at the State Capitol on May 4. Photo courtesy of the Senate Rules Committee.

By Antonio Ray Harvey, California Black Media

On May 4, members of the Farwest Region of Delta Sigma Theta Sorority, Inc., convened at the California State Capitol for the organization’s 23rd annual Delta Days in Sacramento.

The two-day advocacy event brings together chapters from across California to engage directly in the legislative process, connect with lawmakers, and advocate for policies impacting Black communities.

Members of the sorority were honored on the Senate floor by Sen. Laura Richardson (D-San Pedro), who is also a member of Delta Sigma Theta.

Richardson welcomed the Farwest Region during the presentation of a Senate resolution recognizing outgoing Regional Director Kimberly Usher for her leadership and service.

“In addition to the Far West Region, we are led by a fearless leader, regional director Kimberly Usher. She has now served her full term of what’s allowed,” Richardson said. “We are going to be having our regional conference, but we wanted to give it to her here, officially recognizing her service.”

The resolution was co-authored by Richardson and fellow members of the California Legislative Black Caucus (CLBC) and Delta Sigma Theta, Sen. Akilah Weber Pierson (D-San Diego) and Assemblymember Rhodesia Ransom (D-Stockton).

Usher has served in the leadership role since 2022.

A member of the “Divine Nine,” Delta Sigma Theta Sorority, Inc., was founded on Jan. 13, 1913, at Howard University in Washington, D.C. The organization was established by 22 women who sought to shift the group’s focus from social activities to public service, academic excellence, and social activism.

“We are founded on sisterhood that is deeply rooted in scholarship, service, and social action,” said Weber Pierson, a member of the Gamma Alpha chapter of Delta Sigma Theta Sorority.

“Today, we continue a legacy of empowering communities and upholding the high cultural, intellectual, and moral standards established by our founders over a century ago,” she added.

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Bay Area

How Is AI Affecting California? The State Wants You to Share Your Story

The program marks the first time the state has opened the platform to all Californians. State officials said the effort is designed to give residents a direct role in discussions about how AI should be regulated and used as the technology rapidly expands across industries.

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By Bo Tefu, California Black Media  

Gov. Gavin Newsom announced May 7 that California is expanding its Engaged California digital democracy initiative statewide, inviting residents to help shape future state policies on artificial intelligence (AI) and its impact on jobs and the economy.

The program marks the first time the state has opened the platform to all Californians. State officials said the effort is designed to give residents a direct role in discussions about how AI should be regulated and used as the technology rapidly expands across industries.

“We’ve got to be clear-eyed about this moment: AI is moving fast, bringing enormous opportunity, but also real risks,” Newsom said in a statement. “Californians deserve a seat at the table as we shape what’s to come.”

The initiative will roll out in two phases. Beginning immediately, Californians can sign up online to share how AI is affecting their work and communities and provide ideas for possible government action. Later this summer, a smaller group reflecting the state’s workforce demographics will participate in live discussions focused on developing policy recommendations.

State officials said the goal is to identify areas of agreement among Californians and provide policymakers with public feedback as the state develops future AI regulations and workforce strategies.

Engaged California is modeled after digital democracy programs used in Taiwan and is intended to encourage structured public discussion rather than social media-style debate. Officials described the effort as a form of “deliberative democracy” aimed at helping residents engage directly in state decision-making.

“The more Californians are engaged in the democratic process, the better able we’ll be to confront the challenges we face together,” said Nick Maduros, California Secretary of Government Operations, in a statement.

The statewide launch builds on two earlier pilot programs. One pilot gathered public input following the Los Angeles firestorms to help guide recovery efforts, while another collected ideas from state employees about improving government operations.

California has positioned itself as a national leader in AI policy and development. Since 2023, the Newsom administration has introduced initiatives focused on responsible AI use in government, cybersecurity protections, workforce training and regulations targeting risks such as deepfakes and AI-generated robocalls.

The state has also partnered with companies in Silicon Valley — including NVIDIA, Google, Adobe, IBM and Microsoft — to expand AI education and workforce training programs across California schools and universities.

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Advice

Book Review: Books for College-Bound Students

The kind of workday your Grandpa had is probably over, and you can’t count on toiling at the same place for 40 years for a pension and a gold watch. You already know that, and these books will help you decide your next step. You’ll learn what kind of worker you are, what’s stopping you from finding a job or occupation you’ll love, how to determine the purpose you envision for your future, and how to get where you need to be.

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Book covers. Photo courtesy of Terri Schlichenmeyer.
Book covers. Photo courtesy of Terri Schlichenmeyer.

By Terri Schlichenmeyer

Authors: Various, Copyright: c.2026, Publishers: Various, SRP: $21.00 – $29.00, Page Counts: Various

The videos and news reports were inspiring.

In them, a hesitant prospective college student became a happy, new college-bound student with the click of a key. They were accepted into the college of their dreams – so how can you get the same feeling next spring, when you’re the one with the highest of hopes?

You can start by reading these great books and sharing them with your family…

You probably already know that getting into the college of your choice is not something you do last-minute. In “The People’s Guide to College Applications: A Week-by-Week Approach to Writing, Connecting, and Getting in” (Prometheus Books, $ 21.95), Jill Constantino takes you through each step, but not in a frantic way. There’s no pressure here, just easy-to-grasp, makes-sense methods to apply for the college you want. There are reminders here, things you can’t forget and things you can, hints on asking for referrals and writing essays, and plenty of reminders to take a deep breath. Bonus: it’s also a book for parents, who may feel just as much pressure as their child does.

Okay, but let’s say that you’re an adult, a parent who’s sweating those college applications, classes, and the FAFSA for yourself, ugh!  Then you’ll want to read “Student Parent: The Fight for Families, the Cost of Poverty, and the Power of College” by Nicole Lynn Lewis (Beacon Press, $26.97). an urgent call meant for nontraditional students who are also Black, Latinx, gay, Moms, or Dads.

Inside this book, you’ll find stats and stories that may already sound familiar, tales of not enough money, not enough support, not enough arms or sleep or resources. If you’re looking for a book of advice, this isn’t it, though. It’s more of a resource that you’ll want to take to your guidance counselor or any local politician.

Alright, but what if you’ve decided that college can wait? Is that okay? Look for “The Mission Generation: Reclaim Your Purpose, Rewrite Success, Rebuild Our Future” by Arun Gupta and Thomas J. Fewer (Wiley, $29.00) because – guess what? – you have many options for your future.

The kind of workday your Grandpa had is probably over, and you can’t count on toiling at the same place for 40 years for a pension and a gold watch. You already know that, and this book will help you decide your next step. You’ll learn what kind of worker you are, what’s stopping you from finding a job or occupation you’ll love, how to determine the purpose you envision for your future, and how to get where you need to be. This book isn’t just for high schoolers, but for anyone ages 16 and beyond who’s feeling restless, ready for change, or who’s thinking about some kind of purposeful retirement.

And if these aren’t the college-based or not-college-bound books you need, then be sure to ask your favorite bookseller or librarian for help on ideas, how-to’s, test prep books, or study guides. They’ll have books for you, and maybe a little inspiration, too.

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