☕ Made whole

A banking crisis is averted... March 13, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Facet]( Good morning. That was a wild weekend for news, and to think—it all happened with one fewer hour. Somehow we’ve managed to squeeze it into one newsletter: the scramble to prevent a banking crisis, an Oscars recap, turmoil at the BBC, and a lot more. You might want to grab your coffee before diving in. —Neal Freyman MARKETS: YEAR-TO-DATE Nasdaq 11,138.89 +7.24% S&P 3,861.59 +0.98% Dow 31,909.64 -3.70% 10-Year 3.693% -18.7 bps Bitcoin $22,344.11 +35.03% First Republic $81.76 -32.60% *Stock data as of market close, cryptocurrency data as of 5:00am ET. [Here's what these numbers mean.]( - Markets: Investors probably feel like a 5,000-pound weight has been lifted off their shoulders since US regulators announced a plan to make Silicon Valley Bank depositors whole. But danger still lurks: An important inflation report is on tap this week, and the banking sector remains skittish following SVB’s shocking collapse. After another weekly loss last week, the S&P is now barely in the green for the year.  BANKING [OK, you can breathe now]( [Silicon Valley Bank branch]( Justin Sullivan/Getty Images At the end of an extremely stressful weekend, depositors of collapsed Silicon Valley Bank were told they could have everything everywhere, at all once. Yesterday evening, the US government informed anxious SVB depositors that they’d [have access]( to all the money they stashed with the lender today, even if the amount exceeded the $250,000 limit insured by the FDIC. In addition to backstopping depositors, the Fed is offering additional funding to some banks to limit the contagion from spreading across the banking sector. The Fed’s aggressive actions, the scale of which we haven’t seen since early Covid, show how the implosion of Silicon Valley Bank on Friday could have quickly turned into a full-blown banking crisis when markets opened this morning. - Banking is a confidence game, and if people and businesses felt their uninsured deposits were at risk, they could start pulling money from other banks in a catastrophic bank run. - The government had a hard deadline of 9:30am ET this morning to restore confidence in the banking system, and it beat it. Heck, it even got it done before the Oscars. However, in their announcement, regulators also noted the closure of a second bank, New York-based Signature Bank, over “systemic risk.” All of Signature’s depositors will be made whole, they said. What it all means The government’s propping up of SVB’s depositors means the US startup ecosystem will avoid an “[extinction-level event](,” as some startup leaders had warned. More than half of US tech and life sciences startups banked with SVB, and many were concerned they wouldn’t have enough money to pay employees this week or keep their companies running. What will happen to SVB? Its assets will be sold to the highest bidder. The FDIC, which now controls SVB, began an auction for the bank’s assets Saturday night. The cleanest outcome would be a single buyer, but there are only a few banks big enough to realistically scoop it all up, such as JPMorgan, Citigroup, or Bank of America. As of last night, no deal had been reached. Bottom line: While it appears that we won’t be reliving 2008, expect SVB to remain in the headlines for days and weeks to come. Politically charged debates over the Fed’s decision to backstop depositors, the meaning(lessness) of FDIC insurance, regulation of mid-sized banks, and how to prevent another SVB-like collapse have already begun and will only grow louder. �  �  �  TOGETHER WITH FACET [Kick-start your finances]( [Facet]( The best way to jump-start your financial freedom? How does a $500 kick start sound? Right now, Facet’s offering [$250 into your brokerage account]( if you invest $5k within your first 90 days. They’re also waiving the $250 enrollment fee for new annual members. What else comes with your [Facet membership]( besides a $500 kick start? Your own CFP® professional and a team of financial experts across investments, taxes, benefits, and more, plus industry-leading technology to manage and organize your financial life in one place. All this and more for a flat annual membership fee, meaning Facet won’t take a percentage of your investments—so when you make more , you keep more . [Start keeping more of what’s yours](. WORLD Tour de headlines [In this handout photo provided by A.M.P.A.S., Best Original Screenplay winners for "Everything Everywhere All at Once," Daniel Kwan and Daniel Scheinert are seen backstage during the 95th Annual Academy Awards]A.M.P.A.S. via Getty Images It’s a multiverse, we’re just living in it. Everything Everywhere All at Once [dominated]( the Academy Awards, nabbing best picture, three acting wins, and best director. It was also the first time that two Asian actors—Ke Huy Quan and Michelle Yeoh—won Oscars in the same year, both for their roles in EEAAO. Brendan Fraser took home best actor for portraying a 600-pound professor in The Whale. Overall, it was a huge night for A24, the studio behind all six winners of the top Oscar categories. More Oscars: In addition to the awards, viewers were treated to performances by Rihanna and an oddly close-up performance by Lady Gaga. However, those two megastars were ultimately upstaged by “[Naatu Naatu](” from RRR, which became the first song from an Indian film to win best original song. By the time the show concluded (way too late), the newly formed Oscars crisis team had not been called into action, since no shenanigans like last year’s slap occurred during the broadcast. Saudi Aramco made how much? “This is probably the highest net income ever recorded in the corporate world,” Saudi Aramco’s CEO Amin Nasser said, and he might have a point: The state-owned oil giant brought in an astonishing [$161.1 billion in net income]( in 2022, up 46.5% from the previous year. Rising oil prices lifted all energy companies last year, but Aramco was on another level, raking in almost triple ExxonMobil’s 2022 profits (which were a record for any Western oil company). MEDIA [Revolt at the BBC]( [BBC Match of the Day host Gary Lineker looks on during the Emirates FA Cup Quarter Final match between Leicester City and Manchester United]( Marc Atkins/Getty Images A scandal has erupted in Britain at the intersection of TV, sports, and politics. This weekend, the BBC was forced to [pull]( much of its sports coverage following a boycott by anchors and commentators in solidarity with Gary Lineker. Lineker, a former star soccer player and now a hugely popular TV presenter, was [suspended]( by the BBC on Friday for a tweet that criticized the UK government’s immigration proposal to stop asylum-seekers from coming into the country via boats. The BBC said that Lineker’s tweet violated its impartiality guidelines and suspended him from his hosting duties at Match of the Day, a beloved soccer program that’s been around since the ’60s (imagine the glory days of NFL PrimeTime, but with 100x the cultural cache). Chaos ensued. To support Lineker, other BBC on-air talent didn’t show up for work this weekend, causing the network to scramble to fill in programming. It even aired a prerecorded podcast on the radio instead of live soccer coverage. The political fallout: Lineker’s suspension sparked a debate over the BBC’s independence from the government, with critics accusing it of caving to pressure from conservative lawmakers. Even Prime Minister Rishi Sunak weighed in, defending the government’s immigration proposal and expressing hope that Lineker and the BBC would work things out. �  �  �  TOGETHER WITH BELAY [BELAY]( Grow some free time. It’s spring cleaning season, and let’s be honest: You’re spending too much time in the [administrative weeds](. Delegate all those weeds to BELAY’s highly vetted, US-based virtual assistants—and get back to growing your organization. Check out BELAY’s guide and [get started today](. CALENDAR The week ahead [Dereck Lively II #1 of the Duke Blue Devils dunks against the Pittsburgh Panthers during the first half of their game]Grant Halverson/Getty Images While SVB headlines will likely dominate the week ahead, plenty of other major events are happening… March Madness: Let’s go dancing. The [brackets]( are set for the men’s and women’s NCAA college basketball tournaments, which kick off later this week. My Final Four picks for the men’s tourney: Alabama, Houston, Marquette, and UConn. Inflation data: After getting mixed signals about the economy from Friday’s jobs report, the Fed will take a fine-toothed comb to the consumer price index, which drops tomorrow. Biggg week for Irish pubs. Not only is March Madness kicking off, but Saint Patrick’s Day is on Friday. It’s basically an unofficial three-day weekend. Everything else… - Tomorrow is Pi Day. [Here’s a song]( that can help you memorize the first 100 digits. - Ted Lasso’s third and final season premieres this week. ([Here’s the trailer](.) - Beware: Wednesday is the Ides of March. GRAB BAG Key performance indicators [Instant Pot]Gregory Rec/Portland Portland Press Herald via Getty Images Stat: The Instant Pot is almost as washed-up as Kenny Powers. After sales of electronic multicooker devices reached $758 million in 2020, they [plummeted by 50%]( last year, according to NPD Group (and Instant Pot accounts for the majority of this category, per the WSJ). It seems as though every household that wanted an Instant Pot already has one or has moved on to other shiny kitchen appliances, like air fryers. Quote: “YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW” Over the weekend, entrepreneur Jason Calacanis and other startup investors [raised alarms]( on Twitter (sometimes in all caps) about the potentially disastrous consequences of SVB’s collapse and implored Janet Yellen & Co. to step in to protect depositors. Critics were quick to label these SOS calls to the government hypocritical, reminding everyone of investors’ traditionally libertarian, get-the-government-out-of-my-business views. One thing we know for sure: The reactions to SVB’s collapse only deepened the animosity between tech investors and the media. Read: Samsung “space zoom” moon shots are fake, and here is the proof. ([Reddit]() NEWS What else is brewing - [Former VP Mike Pence]( criticized his former boss Donald Trump for his actions on Jan. 6, 2021, saying, “his reckless words endangered my family and everyone at the Capitol that day, and I know that history will hold Donald Trump accountable.” - [Eight people]( were killed when two migrant smuggling boats capsized in thick fog off the San Diego coast. It was one of the deadliest disasters ever involving migrants on US shores, authorities said. - [As many as 500,000 Israelis]( protested the government’s planned judicial changes on Saturday night in what the Haaretz newspaper called the biggest demonstration in the country’s history. - [American skier Mikaela Shiffrin]( broke the record for the most World Cup victories with her 87th. - [Newark, NJ,]( unveiled a statue of abolitionist Harriet Tubman to replace a now-removed statue of Christopher Columbus. RECS [Monday to-do list image] Yeehaw: Here are the [500 best country and western songs]( of the last century. How to say you’re sorry: The [six-and-a-half components]( that make up a good apology. The ride of many lifetimes. A YouTuber built a roller coaster on Roller Coaster Tycoon 2 that will [outlast the universe](. Productivity tip: The [right now list](. Tax relax: Filing season is here—and so are reporting headaches. Thankfully, [TaxAct can be your cure](. They’ll streamline filing so you can max out your refund in peace. [Start your return today](.* *This is sponsored advertising content. GAMES The puzzle section Turntable: I spy a “Q” in today’s Turntable (don’t worry—there’s also a “U”). See if you can find all 32 available words [here](. Prime trivia Set a timer for five minutes. Then, without looking them up, write down the 10 prime numbers between 50 and 100. Or at least see how many you can get. AROUND THE BREW [Become a better leader and manager]( [Plankton from SpongeBob talking about a promotion]( SpongeBob SquarePants/Paramount Global via Giphy You got the promotion….now what? Our one-week virtual course New Manager Bootcamp will allow you to approach your added responsibilities with the tools required to be an incredible leader. [Sign up now](. HR Brew created a list of the HR tech that’s poised to take off this year. [Here’s what you should know](. Never miss the latest technological innovations impacting the business world: [Sign up for Tech Brew](. SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER 53, 59, 61, 67, 71, 73, 79, 83, 89, 97. 89 is a sneaky one! ✢ A Note From Facet Disclosure: Facet Wealth, Inc. (“Facet”) is an SEC Registered Investment Advisor headquartered in Baltimore, Maryland. This is not an offer to sell securities or the solicitation of an offer to purchase securities. This is not investment, financial, legal, or tax advice. � � � � � Written by [Neal Freyman]( Was this email forwarded to you? Sign up [here](. 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