The Federal Deposit Insurance Corp (FDIC) is planning another auction for Silicon Valley Bank. Financial regulators took over the bank on Friday after it could not raise fresh capital following a run on its deposits. On Sunday, the U.S. Treasury, the Federal Reserve, and the FDIC released a joint statement guaranteeing all deposits in SVB and Signature Bank, which regulators shut down on Sunday. More: - On Monday, President Joe Biden confirmed the news in a Twitter thread, noting that all depositors would have access to their funds starting Monday.
- The Treasury Department designated both SVB and Signature as systemic risks, giving it authority to unwind both firms in a way that protects all depositors.
- Biden noted that taxpayers would not bear any burden from the banks’ collapse.
- Funds will be paid from the fees banks pay into the FDIC's Deposit Insurance Fund.
- He added that the management of both banks would be fired, and investors in the banks would lose their money.
- Biden noted his administration would get a full accounting of what happened and hold those responsible accountable.
- He said he would ask Congress and banking regulators to strengthen the rules for banks.
| |
HSBC has agreed to buy Silicon Valley Bank’s U.K. arm following all-night talks led by Prime Minister Rishi Sunak and the Bank of England. HSBC will pay a symbolic £1 (~$1.22) for SVB UK, preventing the U.K. government from having to step in to protect depositors. Before the sale, BOE planned to put SVB UK into insolvency. More: - The sale minimized disruption to the U.K. tech sector and saved hundreds of U.K. startups using the bank.
- HSBC CEO Noel Quinn said the acquisition made excellent strategic sense, with another executive referring to the deal as value accretive.
- SVB UK has about 3,000 U.K. clients, including startups, venture-backed companies, and funds.
- The bank had £6.7B ($8.2B) in deposits on Friday when the BoE deemed it at risk of failure.
- SVB UK experienced a run on its deposits similar to that of its U.S.-based parent company.
- On Thursday, the bank had more than £10B ($12.2B) in deposits.
| |
 A message from VENDASTA It costs around 5x more acquiring a new client than retaining an existing one. Onboard your clients efficiently. The onboarding process is one of the first experiences your clients have working with you and your agency, so ensuring it’s efficient as well as personalized is important. There’s 9 essential steps to follow to onboard new clients successfully every time. They include: - Signing on your new client
- Defining onboarding tasks and dynamic due dates
- Setting up a welcome email series
- Sales handoff and introductions
Download the guide below and access the remaining critical steps to onboarding agency clients. Unlock the included checklist and give your clients the best onboarding experience that will set them up for success working with your agency. Get the guide
| |
The Biden Administration approved ConocoPhillips' Willow oil-drilling project in the Alaskan Arctic. The $7B project in Alaska's National Petroleum Reserve was opposed by environmentalists and many Democrats who wanted the project scrapped. The project, at its peak, is expected to produce 180,000 barrels of oil per day. More: - The Interior Department said it would allow drilling on three of the five drill sites proposed by ConocoPhillips.
- The oil company announced the Willow discovery in 2017.
- Opposition to the project resulted in years of litigation and thousands of pages of environmental analysis by the Interior Department's Bureau of Land Management.
- Many worried that the project, if allowed to proceed, would hinder President Biden's campaign goals to phase out fossil fuels.
- Proponents of the project argued Willow would generate jobs and revenue for Alaska.
| |
Pfizer has agreed to buy biotech firm Seagen Inc. for $43B. The pharmaceutical giant will pay $229 a share in cash, a ~33% premium on Seagen’s Friday close price. The deal, which includes debt, is expected to close later this year or early next year. The acquisition is expected to face antitrust regulatory scrutiny. More: - Seagen makes cancer-targeting drugs; the firm helped pioneer a class of medications called antibody drug conjugates (ADCs), which attack tumors.
- According to drug-market-research firm Evaluate, this class of drugs could bring in $31B in sales in 2028.
- The global cancer drugs market is estimated at $375B.
- Pfizer has been looking to expand its offerings as some of its top-selling drugs, like the breast-cancer drug Ibrance, will lose their patent protection by 2030.
- Following news of the deal, Pfizer shares rose nearly 3% on Monday morning before settling and closing up ~1.2% for the day.
- Seagen closed at $197.65, up ~14.5% for the day.
In related news: - French drugmaker Sanofi has agreed to buy U.S. biopharmaceutical company Prevention Bio for $2.9B.
- The deal is expected to close in Q2 2023.
| |
 A message from LAIKA How Laika Can Help Your Company Become SOC 2 Compliant Laika's Compliance-as-a-Service solution helps companies automate every part of information security compliance. In this guide, you'll learn how to navigate the complex field of SOC 2 compliance from start to finish. Learn what is SOC 2 and why it matters for your startup, how to prep for SOC 2, and what time and cost to expect. Download the guide to turn compliance from a pain point into a secret weapon. Download the guide 
| |
The shares of several U.S. banks fell on Monday following the collapse of Silicon Valley Bank and Signature Bank. Shares of First Republic Bank fell more than 60% on Monday, while Charles Schwab fell 11%, Western Alliance Bancorp lost more than 47%, and PacWest Bancorp fell 45%. Trading in some of these banks was halted repeatedly for volatility throughout the day. More: - Markets were still on edge on Monday after financial regulators shut down SVB on Friday and Signature on Sunday.
- The U.S. Treasury designated both SVB and Signature as systemic risks, giving it authority to unwind both firms in a way that protects all depositors.
- The Federal Reserve also created a new Bank Term Funding Program that will offer loans for up to a year to banks in return for high-quality collateral like Treasurys, agency debt, and mortgage-backed securities.
- The program aims to safeguard banks impacted by the market volatility caused by SVB’s collapse.
- On Sunday, First Republic Bank said it received additional liquidity from the Federal Reserve and JPMorgan Chase.
| |
Chick-fil-A plans to invest $1B to open new locations in Europe and Asia by 2026, reaching five international markets by 2030. CEO Andrew Cathy said a global presence is necessary as the family-owned business charts its future. More: - Cathy said the company plans to continue with its current model where franchisees run only one restaurant, working closely with the company and splitting the profit with the chain after paying fees.
- According to market research firm Technomic, Chick-fil-A is the third largest U.S. fast-food chain by sales after McDonald’s and Starbucks.
- Chick-fil-A’s sales have quadrupled in the last 10 years, and its restaurants average more yearly sales than any other fast-food chain.
- Chick-fil-A currently runs eight locations in Canada and three in Puerto Rico.
Zoom out: - The company’s previous attempts to serve chicken sandwiches six days a week overseas haven’t gone according to plan.
- It expanded into South Africa in 1996 but pulled out in 2001 because it couldn’t build enough brand awareness.
- A location opened near London, U.K., in 2019 but closed within months after it met opposition to the company’s donations to anti-gay-rights organizations.
| |
Quick Hits - End the madness of manual expense reporting with Divvy. Take a demo of Divvy and get a college basketball jersey of your choice.*
- Chinese President Xi Jinping plans to speak with Ukraine President Volodymyr Zelenskyy. This would be the first conversation between the two since the start of the Russia-Ukraine conflict. The talk is expected after Xi meets with Russian President Vladimir Putin in Moscow next week.
- The 95th Annual Academy Awards took place on Sunday, with “Everything Everywhere All at Once” winning seven awards, including best picture. The movie won three of the four acting awards, with Michelle Yeoh becoming the first Asian woman to win best actress.
- Amazon and Rivian are in talks to cancel the exclusivity part of their electric-van deal after Amazon notified the EV maker that it would buy about 10,000 vans this year, the low end of a range Amazon had previously communicated.
- Porsche plans to launch a new all-electric SUV in the upper luxury segment, above its current top SUV, the Cayenne.
- Ready to grow your business through influencer partnerships? Get the visual guide to the essential stages.*
*This is a sponsored post.
| |
Upcoming Events - March 14 - Inside Startups Coffee Break (Register Here)
- March 15 - Monthly Meditation guided by Nicholas Whitaker (Register Here)
- March 20 - Inside Interview with Rollworks - Clearing the Path to ABM Success: Addressing the Issues Holding You Back (Register Here)
- March 27 - Insider Interview with Zscaler - Zero Trust Defense Strategies to Take Your Security to the Next Level (Watch On Demand)
- April 18 - Human Resources Summit'23 (Register Here)
| |
 |  | Vanessa Omeokachie writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
Vendasta is the all-in-one platform for companies selling to local businesses. | |
Laika is a unified compliance platform that automates workflows for audits, infosec monitoring, and vendor due diligence in a single, collaborative space. | |
