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☆ Bank-rule pendulum swings back to 'safety first'
▼ + stars: | 2023-03-13 | by ( John Foley | ) www.reuters.com time to read: +5 min

NEW YORK, March 13 (Reuters Breakingviews) - The crisis that struck the U.S. banking system over the weekend had many causes. After the 2008 crisis, Congress bound up the financial system with rules to prevent bank death spirals. The major financial authorities – the Fed, the Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency – applied the lighter touch. The Fed was permitted to retain tough rules for banks with assets over $100 billion, but decided not to. There are, after all, only 17 banks with assets between $100 billion and $250 billion – two fewer than last week.

☆ Mark Zuckerberg takes on Elon Musk
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 13 (Reuters Breakingviews) - Mark Zuckerberg is eyeing Elon Musk’s turf. Meta Platforms (META.O) is exploring a stand-alone social network for sharing text updates, according to a statement from the social media network to Breakingviews on Monday. The move makes sense since Facebook and Instagram have done a better job wringing money from their users than Twitter has. Since Musk bought Twitter in October 2022, the network has been plagued by technical difficulties and fleeing advertisers. Zuckerberg has a business model that knows how to monetize users, whereas Twitter is still figuring that out.

☆ Ritchie founder perfects disappointed dad routine
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

The company stretching for its acquisition has done something worse: It disappointed dad. Ritchie investors are expected to approve the fiercely contested deal on Tuesday, a surprising outcome, especially to company co-founder David Ritchie. The pair didn’t speak out before because they assumed, given the weight of opposition to the deal, it was dead. If she succeeds, shareholders better hope her optimistic deal math holds up. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Up to $250,000 is secure in individual bank accounts and $500,000 is safe in joint bank accounts. If you're concerned about whether money is safe in a bank during a recession, there's good news — your money will be likely secure in a bank account. Savings accounts, checking accounts, money market accounts, and CDs are examples of federally insured bank accounts. Up to $250,000 is secure in individual bank accounts, and $250,000 is protected per owner in joint bank accounts. If you're worried about keeping money in your bank account during a recession, you can rest assured that your money will likely be safe at a financial institution, and you won't need to take it out of your bank account.

NEW YORK, March 10 (Reuters Breakingviews) - Nearly three years with no U.S. bank failures just came to an unseemly end. The bank owned by SVB Financial (SIVB.O) relied more heavily on large, and therefore, uninsured, deposits than other banks. A buyer – say, a bank that covets SVB’s relationship with upwardly mobile entrepreneurs – might swoop in and buy the whole thing. Other depositors would receive certificates of receivership, which entitle them to dividends payable from the proceeds of selling the bank’s assets. SVB had around $165 billion in deposits as of Feb. 28, it said in a presentation on March 8.

☆ SVB found old concentration risk
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 10 (Reuters Breakingviews) - Silicon Valley Bank’s closure on Friday by California authorities is a reminder of an old lesson: Don’t put too many eggs in one basket. The bank, owned by SVB Financial (SIVB.O), counted half of all U.S. venture capital-backed startups as clients. When tech took a disproportionate hit from the recent inflationary downturn, clients burned through savings, pulling out their deposits. SVB focused on tech, but its downfall is an old story of concentration risk. The eggs in the basket cracked, and in 1988 alone, 175 Texan banks, accounting for 25% of the state’s banking assets, failed.

A series of atmospheric rivers are bringing widespread heavy rainfall to California, and the latest was forecasted to arrive Thursday and continue into Friday. Atmospheric rivers are essentially moisture streams in the sky, which can often be seen from space as narrow bands stretching from the West Coast out across the Atlantic. This one is what’s known as a “pineapple express” because of its origins near Hawaii. CANADA UNITED STATES PACIFIC OCEAN MEXICO CANADA UNITED STATES PACIFIC OCEAN MEXICO CANADA UNITED STATES PACIFIC OCEAN MEXICOAs these long, thin storm systems stretch across the ocean and hit land, they often bring extensive amounts of precipitation in the form of rain and snow. Use the map below to see the latest precipitation forecasts for locations across the West Coast.

☆ In praise of American finance’s regulatory mess
▼ + stars: | 2023-03-09 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, March 9 (Reuters Breakingviews) - There are many issues on which China and the United States are far apart. The People’s Republic this week proposed combining financial regulatory functions into a new super watchdog to govern its financial sector more effectively. China’s proposed new National Financial Regulatory Administration is roughly in this mold. Since 2008, officials in Beijing have criticized the United States’ financial excesses and its “warped conception” of financial discipline. The new National Financial Regulatory Administration would sit directly under the State Council, which serves as China’s cabinet.

☆ Elizabeth Warren leads cavalry into deal battles
▼ + stars: | 2023-03-07 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

It would be the third curious regulatory intervention in recent weeks, each encouraged by Democratic Senator Elizabeth Warren. In a September letter to Transportation Secretary Pete Buttigieg, Warren argued that the DOT should use its own tools, specifically in the Spirit situation. UnitedHealth (UNH.N) beat back a federal lawsuit against its plan to buy Change Healthcare; Facebook owner Meta Platforms (META.O) shrugged off an FTC attempt to stop its purchase of fitness app developer Within. JetBlue says it built time for a lawsuit into the Spirit merger agreement. As the senator charges up the competition cavalry, dealmakers may have to redraw their battle plans.

☆ Fed’s reluctance to go green will cost the Earth
▼ + stars: | 2023-03-07 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

WASHINGTON, March 7 (Reuters Breakingviews) - Central banks don’t think they can do much about the environment. The U.S. Federal Reserve has done even less, arguing it should not tackle climate change without an explicit order from Congress. In a 2021 survey by Invesco, 63% of responding central banks said addressing climate change fell within their mandate. Central banks aren’t best equipped to lead the green transition, anyway. There’s also a valid concern that focusing on climate change could water down the Fed’s mission to fight inflation.

☆ Amazon expansion collides with contraction
▼ + stars: | 2023-03-06 | by ( Jennifer Saba | ) www.reuters.com time to read: +3 min

NEW YORK, March 6 (Reuters Breakingviews) - Amazon.com’s (AMZN.O) rapid expansion is hitting a wall. When it comes to those trends, even Amazon can’t be too sure. But when it comes to the intersection of hiring and work-from-home trends, even Amazon doesn’t have a crystal ball. Follow @jennifersaba on TwitterCONTEXT NEWSAmazon.com is pausing the construction of its next phase of its second headquarters in Arlington, Virginia, the company said on March 3. In 2018, Amazon awarded the Washington suburb with the promise to invest $2.5 billion and hire 25,000 workers.

☆ Victoria's Secret is resurrecting its famous fashion show in 2023 after a 4-year hiatus and a total brand revamp
▼ + stars: | 2023-03-03 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +4 min

Victoria's Secret is bringing back its famous runway show this year after a four-year hiatus. The lingerie retailer canceled the show in 2019 after criticism, scandal, and lagging sales. Victoria's Secret has previously said the show would eventually return, but never set a date. Victoria's Secret began airing an annual fashion show beginning in 1995. Consumer tastes had begun to change, shifting away from the push-up bras and sexpot style defined by Victoria's Secret and toward more comfortable bralettes and sports bras.

☆ Spring training roundup: Pirates, O’s play unneeded bottom of 9th
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +5 min

Orioles catcher Maverick Handley called balls and strikes thrown by teammate right-hander Ofreidy Gomez during the half inning. The Pirates opened a 5-0 lead before the Orioles put up four runs across the fifth and sixth innings, thanks in part to Franchy Cordero's two-run home run. Kevin Pillar had a two-run homer and an RBI single to power the Braves' offense. Phillies 7, Blue Jays 2Trea Turner hit a two-run single and finished 2-for-3 with a run as host Philadelphia took care of Toronto in Clearwater, Fla. Jace Peterson cracked a three-run homer for the Athletics.

Banks offer a grace period once a CD term ends, when you can decide to renew the term or withdraw money. Before automatically renewing a CD, always review the current CD rates available at your bank. What happens when your CD reaches maturityOnce your CD has reached maturity, you'll have the flexibility to make changes to your account. Alternatives to CDsIf you've decided you'll need access to your money relatively soon, a high-yield savings account or money market account are alternative savings account options. If you receive a CD maturity notice and decide not to act, usually your CD will automatically renew for another term.

☆ Los Angeles Officials Investigating Death of Catholic Bishop as a Homicide
▼ + stars: | 2023-02-20 | by ( Joe Barrett | ) www.wsj.com time to read: 1 min

David O’Connell had served as a priest and later as an auxiliary bishop in Los Angeles for nearly 45 years. The Los Angeles County Sheriff’s Department said Sunday that it is investigating the death of an auxiliary Roman Catholic bishop who died on Saturday from a gunshot wound as a homicide. David O’Connell, 69 years old, had served as a priest and later as an auxiliary bishop in Los Angeles for nearly 45 years, said Archbishop José H. Gomez of Los Angeles. “He was a peacemaker with a heart for the poor and the immigrant,” Archbishop Gomez said.

☆ One killed, three wounded in Texas mall shooting
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +1 min

Feb 15 (Reuters) - (This Feb. 15 story has been refiled to delete an extraneous quote in paragraph 2)One person was killed and three were wounded on Wednesday in a shooting at an El Paso, Texas, shopping mall, police said. A police spokesman, Robert Gomez, told reporters one suspect was in custody, but media reports said a second person was also taken into custody following the shooting at Texas' Cielo Vista Mall. [1/4] Shoppers leave as law enforcement members respond to a shooting at the Cielo Vista Mall, in El Paso, Texas, U.S February 15,2023. This is a large scene as it being a mall, so it's going to take time," Gomez said, adding he had no information on the condition of the wounded. The Cielo Vista mall is next to the Walmart store where a gunman killed 23 people on Aug. 3, 2019.

☆ One shot dead, three wounded in Texas mall shooting
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: 1 min

Feb 15 (Reuters) - One person was killed and three others wounded in a shooting at an El Paso, Texas, shopping mall on Wednesday, police said. One suspect was in custody and police were looking for another possible suspect, police spokesman Robert Gomez told reporters. The Cielo Vista mall is next to the Walmart store where a gunman killed 23 people on Aug. 3, 2019. Reporting by Daniel Trotta; Editing by Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

☆ Shooting Rattles El Paso Mall Next to Scene of 2019 Rampage
▼ + stars: | 2023-02-15 | by ( Elizabeth Findell | ) www.wsj.com time to read: 1 min

Members of law enforcement gather outside the Cielo Vista Mall in El Paso, Texas, following the shooting. One person was killed and three were wounded in a shooting at El Paso’s Cielo Vista Mall Wednesday evening—steps away from the Walmart where an attacker killed 23 people in 2019. Police in the West Texas border city said reports of an active shooter near the mall’s food court came in around 5:10 local time. One suspect was in police custody as police searched for a possible second suspect, said Sgt. Robert Gomez, a police spokesman.

☆ Buyout barons reach deep into their bags of tricks
▼ + stars: | 2023-02-15 | by ( Jonathan Guilford | ) www.reuters.com time to read: +7 min

NEW YORK, Feb 15 (Reuters Breakingviews) - Debt necessity is proving to be the mother of private equity invention. With the cheap borrowing that fueled record-breaking years of leveraged buyouts gone, firms are digging deeper into their bags of tricks. Private equity firm Silver Lake, which bought a stake alongside the IPO, said it might take control. Besides putting private equity firms into weaker negotiating positions, the competing incentives also threaten conflicts of interest with limited partners. ...THERE’S A WAYIf the U.S. Federal Reserve avoids engineering a recession, private equity should be able to revert to its tried-and-true formula soon enough.

☆ Fear of complacency costs Alphabet $150 billion
▼ + stars: | 2023-02-09 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

The market wiped about $150 billion off the $1.2 trillion company’s market capitalization as a result. A day earlier, rival Microsoft (MSFT.O) unveiled and released a version of its search engine loaded with AI that can answer complex questions using multiple sources of information. Microsoft, no small competitor, hopes being better will result in a more competitive search market. On Feb. 7, Microsoft held an event that unveiled new versions of its search engine and web browser that incorporate artificial intelligence. The company has released a version of its Bing search engine using the technology.

☆ Worker shortage gives U.S. reason to robotize
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Feb 8 (Reuters Breakingviews) - The U.S. labor shortage isn’t going anywhere, at least according to U.S. Federal Reserve Chair Jerome Powell. Worker productivity, measured as output per hour, fell last year and still sits below the late-2021 peak. If the shortage is, in fact, structural, robots offer businesses an alternative to increasingly expensive labor. A burrito-rolling bot might not replace workers quite yet, but planning for it could be prudent amid the hiring rat race. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ CVS pays exorbitant $10 bln price to diversify
▼ + stars: | 2023-02-08 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

NEW YORK, Feb 8 (Reuters Breakingviews) - CVS Health (CVS.N) keeps marching ahead with its plan to create an American healthcare colossus. Its latest acquisition involves paying $10.6 billion, including debt, to buy Oak Street Health (OSH.N). CVS is buying home-healthcare assessment provider Signify Health (SGFY.N) for $8 billion, and now Oak Street, to beef up its capabilities. CVS is valuing each Oak Street healthcare provider at more than $17 million, and each patient at about $67,000. In September, CVS agreed to buy Signify Health, a home healthcare provider mostly for Medicare patients, for $8 billion.

☆ Meme investors go to bed, take a bath
▼ + stars: | 2023-02-07 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +3 min

And that showed on Monday, when American sheets and curtains retailer Bed Bath & Beyond (BBBY.O) moved to bring in a new cash injection. Bed Bath & Beyond has been on the brink of collapse for a while, warning recently that a bankruptcy filing could be on the horizon. Recently, though, even as talk of bankruptcy has grown, shares in Bed Bath & Beyond have been on a tear again. That culminated in the announcement Tuesday morning that it had priced an offering of preferred stock and warrants, which comes on top of the rearrangement of some of its debt. CONTEXT NEWSRetailer Bed Bath & Beyond said on Feb. 7 that it had priced an offering of convertible preferred stock, as well as warrants to purchase further preferred shares and common stock.

☆ Carlyle's new boss will be virtuoso second fiddle
▼ + stars: | 2023-02-06 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

That’s the best way of interpreting the private equity firm’s appointment of former Goldman Sachs (GS.N) banker Harvey Schwartz on Monday. He never quite made it to the CEO job at Goldman, though served in a number of high-level roles like chief financial officer and chief operating officer. They felt that the ousted Lee, who pushed hard to diversify Carlyle’s business, hadn’t adequately consulted them on big moves, according to Reuters. The firm’s co-founder Bill Conway, also one of Carlyle’s two co-chairmen, has been filling the role on an interim basis. Schwartz previously held various senior roles including chief financial officer and chief operating officer at investment bank Goldman Sachs, which he left in 2018.

☆ Real and fake meat share problems
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +2 min

TORONTO, Feb 6 (Reuters Breakingviews) - Pain in the fake meat market is starting to spread to the real one. That’s still much better than Beyond Meat (BYND.O), which isn’t even booking an operating profit at this point. But the two companies share a few of the same problems that aren’t going away. With prices along the supply chain going up, including for transportation, consumers are making other choices. Forgoing meat – no matter the consistency – is a real problem.

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