Where Does Wall Street and Tech Go After SVB’s Downfall?


Welcome back! Dan DeFrancesco in NYC, and I feel like my entire life has been a lie after learning the truth about “sizzling” fajitas at restaurants.

Today, we’ve got stories on a fintech that’s set up shop in the south of France, the potential downfall of a small, Christian college with Wall Street ties you’ve probably never heard of, and why you’re doing intermittent fasting all wrong

But first, now what?

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A cracked SVB logo with figures trying to put it back together

Tyler Le, Rebecca Zisser/Insider

1. Picking up the pieces from SVB.

Where do we go from here?

It’s just over a week from Federal regulators announcing they would be bailing out depositors of Silicon Valley Bank and Signature Bank. Now, the FDIC said Sunday that New York Community Bancorp’s Flagstar Bank will take on nearly all of Signature Bridge Bank’s deposits.

The initial bail out was meant to stop panic among the general public and limit contagion.

About that…

The past week has not been kind to the banking industry. SVB Financial, the parent company, has filed for bankruptcy as it still awaits a potential buyer. Meanwhile, the biggest US banks stepped in to deposit $30 billion into First Republic.

Still, that might still not be enough to save the beleaguered bank. It’s gotten so bad that famed investor and noted Midwesterner Warren Buffett is talking to the Biden administration about how to save regional banks

The bad banking vibes have even spread across the pond. Credit Suisse, whose problems long preceded SVB’s downfall, to be fair, is getting acquired by Swiss rival UBS. The deal is worth $2 billion, a considerable amount less than what the bank’s market cap was on Friday. Here’s a statement from the Swiss National Bank on the news.

In an hour-long call held late on Sunday evening, top UBS executives defended their decision — and analysts began breaking down what comes next.

But, as we look at what the future holds for the world of finance, it’s worth remembering how we got here. Insider has you covered with three features looking at the play-by-play perspective on how SVB fell apart, why big banks came out on top, and how the knock-on effects will be felt for years to come across industries.

Panic and recrimination: Inside Silicon Valley’s first real financial crisis.

Wall Street keeps winning even in a banking crisis.

Silicon Valley Bank was the bank for tech. Its collapse is everyone’s problem.

Top UBS executives defend their “emergency rescue” of Credit Suisse. Here’s what comes next.

In other news:

French Riviera

Armando Oliveira/Getty Images

2. Fintech in the south of France. Messaging and workflow startup Symphony opened an engineering hub just outside Nice where employees can split their time between the Alps and the French Riviera. (Must be Nice!) Check out photos from an office location we are all jealous of.

3. VC’s LPs weigh in. The people backing venture capitalists, known as limited partners, share their thoughts on how VCs handled the crisis at Silicon Valley Bank. Read more here.

4. My college might soon no longer exist. Insider’s Paige Hagy has a fascinating first-person look at her experience attending The King’s College. The small, Christian school in New York City’s financial district is on the brink of going under. You’re gonna want to read this one.

5. Invest in single-family rentals, they said. It’ll be easy, they said. From iguanas squatting in the attic to dozens of snakes living in the walls, Wall Street is getting a crash course on being a landlord at scale. More wild examples of the challenges of property management

6. PE and porn. The parent company of Pornhub (a website I am sure none of you are familiar with) was acquired by a new private-equity firm named, wait for it, Ethical Capital, The Financial Times reports. More on the deal here. 

7. Forget Deadheads and Parrotheads, the Swifties are on tour. Taylor Swift’s “Eras Tour” kicked off this weekend in Arizona. We broke down what goes into preparing a city for the arrival of the superstar’s rabid fans. From new bars to thousands of cookies, here’s how to build out “Swift City.”

8. So you want to get into the fast-food business? Fast food could mean fast money, but it won’t necessarily come cheap. We’ve got the rundown on how much it costs to open 12 of the biggest fast-food chains in the US.

9. How to ride the rails in style. Insider’s Joey Hadden has ridden nearly 1,000 miles across multiple countries on business-class trains. Here’s where she ranks them all. 

10. If you’re trying intermittent fasting, don’t do this. It’s a popular diet, but you need to do it right! These are five common mistakes to avoid, according to a researcher. 

Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 



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