Sunday☕️

Mar 12, 2023 • 4 min read

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Week Recap:

During the congressional hearing on Tuesday, Federal Reserve Chairman Jerome Powell stated that interest rates are "likely to be higher than previously anticipated."
Members of the Gulf Cartel kidnaped four Americans who went to Mexico for a medical procedure. Two were killed, and the other two were rescued and taken to Brownsville, Texas.
The Cartel later turned over the five men involved to preserve US-Mexican relations.
Apple launched an online store in India and announced plans to open retail stores there later this year.
Georgia Power's Vogtle nuclear reactor unit 3 has started generating heat through nuclear fission after achieving "initial criticality."
More Twitter Files have been released based on government censorship (Link on Friday's newsletter).
SpaceX launched 40 OneWeb satellites into orbit.
Silicon Valley Bank has officially failed after a bank run occurred over fears of insolvency (from Bond/MBS portfolio losses).

Silicon Valley Bank:

From the balance sheet above, SVB could only fulfill 23% of customer withdrawals.
When SVB had a bank run (over 23% of funds were withdrawn), they couldn’t fulfill the transactions causing SVB to become insolvent.
Silicon Valley Bank is now controlled by the FDIC and is giving workers 45 days of employment. After 45 days, the employees will be let go. They have 8,500 employees worldwide.
Statement from the FDIC:

There is more than $22 trillion in the U.S. banking system. The FDIC has $124.5 Billion on its balance sheet and a $100 Billion line of credit from the U.S. Treasury. FDIC assets cover only 1.26% of US customer deposits.

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