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☆ Premarket stocks: Silicon Valley Bank left a void that won't easily be filled
▼ + stars: | 2023-03-20 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

There’s no doubt that the failure of Silicon Valley Bank left a large void in tech. To find out, Before the Bell spoke with Ahmad Thomas, president and CEO of the Silicon Valley Leadership Group. Before the Bell: What’s the feeling on the ground with tech and VC leadership in Silicon Valley? Ahmad Thomas: Silicon Valley Bank has been a key part of our fabric here for four decades. FDIC sells most of failed Signature Bank to FlagstarFrom CNN’s David GoldmanA week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank.

☆ FDIC sells most of failed Signature Bank to Flagstar
▼ + stars: | 2023-03-19 | by ( David Goldman | ) edition.cnn.com time to read: +1 min

New York CNN —A week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank. New York Community Bank bought substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets. That includes $12.9 billion of Signature’s loans, which New York Community Bank purchased at a steep discount -— it paid just $2.7 billion for them. New York Community Bank also paid the FDIC stock that could be worth up to $300 million. That’s likely why New York Community Bank was unwilling to take on all Signature’s assets.

New York CNN —First Republic Bank, facing a crisis of confidence from investors and customers, is actively discussing options for a lifeline — including a takeover, according to the Wall Street Journal. Participating in the discussions Thursday are massive Wall Street banks, including JPMorgan and Morgan Stanley, the Journal reported. Both Fitch Ratings and S&P Global Ratings downgraded First Republic Bank’s credit rating on Wednesday on concerns that depositors could pull their cash from the bank. Many regional banks, including First Republic, have large amounts of uninsured deposits above the $250,000 FDIC limit. To make money, banks use a portion of customers’ deposits to give out loans to other customers.

☆ US futures and Asia Pacific stocks react to SVB recovery efforts
▼ + stars: | 2023-03-13 | by ( Michelle Toh | ) edition.cnn.com time to read: +4 min

On Sunday, the Biden administration promised that customers of the failed Silicon Valley Bank (SVB) and Signature Bank would have access to all their money starting Monday. In a joint statement, US Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg said the FDIC will make SVB and Signature Bank’s customers whole. In a related action, the government shut down Signature Bank, a regional bank that was teetering on the brink of collapse in recent days. “Cross-asset traders of all stripes are heaving a sigh of relief as bank runs have a tendency to catch on globally,” he told CNN. Bank shares in Asia were under pressure Monday, following a heavy rout for their US and European counterparts late last week.

☆ Premarket stocks: From Wile E. Coyote to edibles: Recession forecasts are getting weird
▼ + stars: | 2023-03-13 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +12 min

And for the US economy, it could likely mean a “Wile E. Coyote moment,” Summers said — if we run off the cliff, gravity will eventually win out. AntibioticsWhen describing the state of the economy, Summers doesn’t just rely on Looney Tunes. “Will working people be better off if we just walk away from our jobs and inflation remains 5% or 6%?” Powell replied. Before the Bell: Is it necessary to increase the unemployment rate to successfully fight inflation? In a related action, the government shut down Signature Bank, a regional bank that was teetering on the brink of collapse in recent days.

☆ US regulators are working to bail out SVB customers
▼ + stars: | 2023-03-12 | by ( David Goldman | ) edition.cnn.com time to read: +4 min

New York CNN —American regulators are working through the weekend on an extraordinary plan to make Silicon Valley Bank customers whole after the financial institutions’ stunning and rapid collapse late last week. Treasury, Federal Reserve and Federal Deposit Insurance Corp. officials over the past two days have worked with the Biden administration to develop facilities that would guarantee all uninsured deposits held by SVB customers. If a sale fails, customers could collect some of their uninsured deposits as the government unwinds and liquidates the bank’s assets to repay them. As of the end of last year, Silicon Valley Bank said it had $151.5 billion in uninsured deposits, $137.6 billion of which was held by American customers. Customers yanked $42 billion from Silicon Valley Bank on Thursday, leaving the bank with $1 billion in negative cash balance, the company said in a regulatory filing.

☆ What’s the next Silicon Valley Bank — and how can the US prevent more chaos?
▼ + stars: | 2023-03-12 | by ( David Goldman | ) edition.cnn.com time to read: +5 min

New York CNN —Silicon Valley Bank failed in rapid, stunning fashion Friday. What took place Friday was an old-fashioned bank run: Customers yanked $42 billion from Silicon Valley Bank on Thursday, leaving the bank with $1 billion in negative cash balance, the company said in a regulatory filing. As of the end of last year, Silicon Valley Bank said it had $151.5 billion in uninsured deposits, $137.6 billion of which was held by American customers. Wall Street is also concerned the tech companies that kept their cash with Silicon Valley Bank could collapse. What a bailout might look likeCalls for a bailout have grown over the weekend from Silicon Valley to Wall Street.

☆ JPMorgan Chase sues former executive Jes Staley over Jeffrey Epstein relationship
▼ + stars: | 2023-03-08 | by ( David Goldman | ) edition.cnn.com time to read: +1 min

New York CNN —JPMorgan Chase sued former executive James Edward “Jes” Staley, who was largely responsible for JPMorgan’s 15-year financial relationship with disgraced financier Jeffrey Epstein. By suing Staley, JPMorgan brings its former executive and former Barclays CEO into the court case as a defendant. The US Virgin Islands’ suit did not name Staley as a defendant and he has not been charged criminally with any activities related to Epstein. If successful, JPMorgan’s maneuver could make Staley financially responsible if JPMorgan loses its case. Those email exchanges allegedly continued long after Epstein was convicted, the US Virgin Islands government wrote in its complaint.

☆ White House lashes out at Tucker Carlson in extraordinary rebuke
▼ + stars: | 2023-03-08 | by ( David Goldman | ) edition.cnn.com time to read: +3 min

New York CNN —The White House lashed out at Fox News host Tucker Carlson Wednesday in an extraordinary rebuke of the late-night commentator who has been airing false depictions of the January 6, 2021, attack this week. Carlson, given access to about 40,000 hours of US Capitol security camera footage by Republican House Speaker Kevin McCarthy, has aired carefully selected clips to portray the pro-Trump mob as peaceful patriots. White House spokesperson Andrew Bates added to the condemnation Wednesday. The Capitol Police has continuously warned that release of all security footage from the Capitol could pose a potential security risk for the building. In one November 2020 exchange, Carlson said Trump’s post-election behavior was “disgusting.” And in another text message conversation, two days before the January 6 attack, Carlson said, “We are very, very close to being able to ignore Trump most nights.

☆ ExxonMobil sued after a Black employee allegedly discovered a noose at work. It was the fifth at the same facility
▼ + stars: | 2023-03-02 | by ( David Goldman | ) edition.cnn.com time to read: +2 min

The EEOC alleges that in January 2020, a Black employee at Exxon (XOM)Mobil’s Baton Rouge chemical plant found a noose at his worksite and reported it to the company. The company failed to investigate each event and didn’t do enough to prevent further incidents, the EEOC alleges. Todd Spitler, a spokesperson for ExxonMobil, said in a statement that the company disagrees with the EEOC’s findings. “ExxonMobil promptly performed a thorough investigation of this claim, and there was no evidence to support allegations of discrimination,” he said. “The symbols of hate are unacceptable, offensive, and in violation of our corporate policies.”In 2021, multiple nooses were discovered at the construction site of an Amazon fulfillment center in Windsor, Connecticut.

☆ Donald Trump sues Bob Woodward for releasing audio of their interviews
▼ + stars: | 2023-01-31 | by ( David Goldman | ) edition.cnn.com time to read: +3 min

New York CNN —Former President Donald Trump has sued journalist Bob Woodward for copyright violations, claiming Woodward released audio from their interviews without Trump’s consent. Woodward conducted several interviews with Trump for “Rage,” the author’s second book on the former president that hit bookstores in September 2020. Woodward later released “The Trump Tapes,” an audiobook featuring eight hours of raw interviews with Trump interspersed with the author’s commentary. That book, which went on sale October 25, 2022, contains the 20 interviews Woodward conducted with Trump from 2016 through 2020, including those for “Rage.”But Trump, in the lawsuit filed Monday in the Northern District of Florida, claims he did not give Woodward permission to release the audio of the interviews. In that case, US District Judge Donald Middlebrooks of the Southern District of Florida wrote that Trump has demonstrated a “pattern of misusing the courts to serve political purposes” as he ticked through several other failed lawsuits Trump has brought in recent years.

☆ Live Nation exec will face lawmakers about Taylor Swift concert tickets fiasco
▼ + stars: | 2023-01-24 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +7 min

“It goes without saying that I’m extremely protective of my fans,” Swift wrote on Instagram in November. The mergerCriticism of Ticketmaster’s dominance dates back decades, but the Swift ticketing incident has once again turned that issue into a dinner table discussion at many households. Concert promoter Live Nation and ticketing company Ticketmaster, two of the largest companies in the concert business, announced their merger in 2009. ‘Customers are the ones that pay the price’While irate fans were left scrambling to wade through the Swift ticket confusion, their collective anger caught lawmakers’ attention. To me, what happened with the Swift concert tickets was not necessarily the result of Ticketmaster being the dominant player in the industry,” he said.

☆ 37 million T-Mobile customers were hacked
▼ + stars: | 2023-01-19 | by ( David Goldman | ) edition.cnn.com time to read: +2 min

New York CNN —T-Mobile said a “bad actor” accessed personal data from 37 million current customers in a November data breach. T-Mobile said no social security numbers, credit card information, government ID numbers, passwords, PINs or financial information were exposed in the hack. T-Mobile said it is working with law enforcement and has begun to notify customers whose information may have been breached. After T-Mobile (TMUS) learned about the data breach, the company said it hired an external cybersecurity team to investigate. “Protecting our customers’ data remains a top priority,” T-Mobile said in a statement.

☆ Boeing 737 Max 8 takes off in China for the first time since 2019
▼ + stars: | 2023-01-13 | by ( Pierre Meilhan | ) edition.cnn.com time to read: +1 min

CNN —A Boeing 737 Max 8 took off in China on Friday, for the first time since the government grounded all 737 Max 8 planes in 2019, according to the flight tracking website, Flightradar24. In March 2019, Chinese aviation authorities instructed airlines in the country to ground all their Boeing 737 MAX 8 aircraft, citing the need for “strict control of safety risks.” The decision followed two 737 Max 8 crashes in Ethiopia in 2019 and Indonesia in 2018. The Boeing 737 Max 8 that took off Friday is operated by China Southern Airlines and traveled from Guangzhou to Zhengzhou, according to Flightradar24. The SEC had alleged that, following an October 2018 crash of a Lion Air 737 Max jet that killed 189 people, Boeing and Muilenburg knew that part of the plane’s flight control system posed an ongoing safety concern yet told the public that the 737 Max was safe to fly. After a March 10, 2019 fatal 737 Max crash, the SEC alleged that Boeing and Muilenburg knowingly misled the public about “slips” and “gaps” in the certification process of that flight control system.

☆ Disney names Nike executive Mark Parker as new chairman
▼ + stars: | 2023-01-11 | by ( David Goldman | ) edition.cnn.com time to read: +3 min

New York CNN —The Walt Disney Company has named Nike executive chairman Mark Parker as its new board chair, replacing longtime director Susan Arnold, whose term limit is expiring. Parker, a Disney board member since 2016, takes over Disney’s board at a time of transition for America’s largest media company. Disney said among Parker’s qualifications as board chair is that he navigated a successful CEO transition at Nike. And Disney’s media networks are struggling as cord cutting accelerates and once lucrative outlets like ESPN lose viewership. She praised Parker for helping lead Disney through a difficult period for the company and the broader media industry.

☆ Wall Street Journal: Vince McMahon plots return to WWE
▼ + stars: | 2023-01-05 | by ( David Goldman | ) edition.cnn.com time to read: +2 min

New York CNN —Vince McMahon, the former World Wrestling Entertainment chief executive, who retired from the company last year following a hush money and sexual harassment scandal, is plotting a return to the WWE, the Wall Street Journal reported Thursday. The WWE has disclosed multiple expenses that McMahon hadn’t disclosed, totaling $19.6 million, which forced the company to revise its financial statements for 2019, 2020 and 2021. The Journal in July reported McMahon paid more than $12 million to four women, including the one from the prior report, to cover up “allegations of sexual misconduct and infidelity.”Now, the 77-year old McMahon is attempting a comeback. McMahon’s daughter, Stephanie McMahon took over as board chair and co-CEO after Vince McMahon’s retirement in July. WWE and Vince McMahon did not immediately respond to a request for comment.

☆ Tesla’s shares plunge further on weaker than expected sales
▼ + stars: | 2023-01-03 | by ( Chris Isidore | ) edition.cnn.com time to read: +2 min

New York CNN —Tesla shares plunged more about 13% in early trading Tuesday, as weaker than expected global sales caused the company’s massive slide in its share price that began last year to continue. While it had already warned it would miss that aggressive full-year target, its fourth quarter sales of 405,278 cars was far weaker than feared. The 13% drop in Tesla (TSLA) shares, if it holds, would be the worst day for Tesla (TSLA) shares in more than two years. The company’s shares ended 2022 down 65% for the year, greatly cutting into Musk’s net worth and knocking him out of his position as the world’s richest person. It was the worst year ever for Tesla (TSLA) shares, which gained 743% in 2020 and another 50% in 2021.

☆ Premarket stocks: Here's what will drive markets this year
▼ + stars: | 2023-01-03 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +5 min

Markets are pushing higher but don’t get comfortable just yet — if last year taught us anything it’s to expect the unexpected. Russia and UkraineIn late February Russia invaded Ukraine and began a prolonged war that would drive global food and fuel prices sky-high. The CEO of Tesla, SpaceX and Twitter is now worth $137 billion, according to the Bloomberg Billionaires Index. Musk’s $44 billion purchase of Twitter hasn’t helped Tesla’s stock or Musk’s personal wealth, either. Musk, Tesla’s largest shareholder, has sold $23 billion worth of Tesla shares since his interest in Twitter became public in April.

☆ Tesla delivered a record 1.3 million vehicles in 2022, but it still disappointed Wall Street
▼ + stars: | 2023-01-02 | by ( David Goldman | ) edition.cnn.com time to read: +2 min

New York CNN —Tesla delivered a record number of cars last year, as sales continued to grow by percentages any other major automaker would dream about. But Tesla still managed to disappoint Wall Street throughout 2022 – and the last quarter was no different. The electric automaker delivered 1.3 million vehicles in 2022, up 40% from 2021. It produced nearly 1.4 million vehicles, up 47% from the prior year. Tesla said it delivered 1.25 million of its less-expensive Model 3 and Model Y electric cars, and nearly 67,000 of its higher-end Model X and Model X lines.

☆ Elon Musk has lost a bigger fortune than anyone in history
▼ + stars: | 2023-01-02 | by ( David Goldman | ) edition.cnn.com time to read: +2 min

New York CNN —Elon Musk’s wealth destruction has become historic. The bulk of Musk’s wealth is tied up in Tesla (TSLA), whose stock plunged 65% in 2022. Musk’s $44 billion purchase of Twitter hasn’t helped Tesla’s stock or Musk’s personal wealth, either. Musk, Tesla’s largest shareholder, has sold $23 billion worth of Tesla shares since his interest in Twitter became public in April. Tesla’s stock may rebound, and Musk could once again become the world’s richest person.

New York CNN —After years of legal battles, pontificating and theorizing, former President Donald Trump’s tax returns from 2015 to 2020 are now part of the public record. However, Trump’s tax returns raise numerous questions about the former president’s finances, his business activities, foreign ties and his charitable donations, among other issues. The tax returns do not show what the bank account was used for or how much money passed through it or to whom. The tax returns don’t say how much he lent them or why he gave them loans in the first place. Since 1977, the Internal Revenue Service has had a policy of auditing every president’s personal tax returns while they are in office.

The S&P 500 was 0.7% lower Friday, leaving it down 19.9% for the year. Corporate bonds had a miserable 2022, too: The return on bonds issued by S&P 500 companies was -14.2% this year. The Bloomberg Aggregate US Bond Index had its worst year since the index’s inception in 1977, according to FactSet. Excluding energy, S&P 500 earnings would fall 1.8% this year, Butters predicted. Occidental Petroleum has been the biggest gainer of the year in the S&P 500, up 122% year-to-date.

☆ Why Southwest is still melting down
▼ + stars: | 2022-12-29 | by ( David Goldman | ) edition.cnn.com time to read: +6 min

Still, Southwest canceled another 2,300 flights today, long after its rivals had resumed normal service. Here’s why is Southwest taking so long to get its operations back on track: Southwest got unlucky with the location of the storm and its timing. And outdated scheduling technology left Southwest scrambling to match crew with planes. Bad luckThe storm hit Chicago and Denver hard, where Southwest has two of its biggest hubs – Chicago Midway airport and Denver International airport. Although Southwest says it was fully staffed for the holiday weekend, illness makes adjusting to increased system stress difficult.

But the sheer number of nurses working travel jobs, and the difference between what they thought was promised and what they pocketed, has led to a substantial legal pushback by travel nurses around the country on the issue. Courtesy Jordyn BashfordThis summer, Stueve Siegel Hanson, a Kansas City, Missouri, law firm, filed class-action lawsuits against four travel nurse agencies: Aya, Maxim, NuWest and Cross Country. Advertisements touted an hourly rate of $8 to $11, but many nurses wound up making less than $6, according to Pan Travelers, a professional association of travel nurses. But by February, after her first 13-week contract, Covid hospitalizations had waned and the demand for travel nurses had fallen. Mark Humphrey / APTwo travel nurses walk the hallways during their shift at a hospital in Rhode Island.

☆ Analysis: Southwest got billions of dollars in taxpayer aid. Why is its service still a mess?
▼ + stars: | 2022-12-28 | by ( Alicia Wallace | ) edition.cnn.com time to read: +10 min

Southwest Airlines received more than $7 billion from that program. However, analysts say, Southwest’s service meltdown is unrelated to the taxpayer assistance the airline received in 2020. Cancelled Southwest Airlines flights are seen on the flight schedules at LaGuardia Airport, Tuesday, Dec. 27, 2022, in New York. In April 2020, airline passenger traffic plummeted 96% and stayed 60% below 2019 levels in 2020, according to the US Government Accountability Office. “The problems at Southwest Airlines over the last several days go beyond weather,” she said in a statement.

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