Big banks to the rescue
Happy St. Patrick's Day! Dan O'DeFrancesco (we're all Irish today) in NYC. Goldman Sachs' decision to charge employees for coffee might not be that outrageous after all! An extremely valuable baseball team makes its players pay for their own in-flight wifi.
Fun fact of the day: St. Patrick was actually born in Britain.
But first, bankers! Assemble!
1. Banks to the rescue.
It's a bird! It's a plane! It's the 11 biggest US banks to the rescue!
Did you feel that? That's the weight of the biggest banks in the country putting their proverbial foot down.
The largest US banks — headlined by Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo — just pledged a total of $30 billion in deposits to First Republic Bank.
The move was made to not only stabilize First Republic Bank — which recently saw its credit rating downgraded as its share price dropped and clients pulled money — but also to show confidence in the wider banking ecosystem.
As detailed in a release announcing the news, the 11 banks, which also included Goldman Sachs and Morgan Stanley, believe the move "demonstrates their overall commitment to helping banks serve their customers and communities. Regional, midsize and small banks are critical to the health and functioning of our financial system."
It's a fitting end to what was one of the wildest banking weeks in recent memory. What started off with a crisis focused on a specialized, albeit powerful bank, eventually spilled out to regional banks across the country.
While the move should calm the markets, it's not a long-term solution, per se. The money is committed to First Republic for at least 120 days, which puts us at about mid-July. I can't imagine the big banks looking to pull the rug out from First Republic four months from now, but this money was a deposit, not a donation.
As Insider's Hayley Cuccinello reports, First Republic's problems are far from over. The deposits are moreso a lifeline, not a fix-all.
I also wonder what this means for Silicon Valley Bank. (Remember them?) The bank, errr the FDIC, is still looking for a buyer. But now that some of the potential buyers have all pledged significant capital to First Republic, I wonder if that diminishes its chances of getting acquired.
PS — If you're thinking about emailing me that The Avengers are in the Marvel universe and Superman is in the DC universe, please don't. Go outside and touch some grass instead.
In other news:
2. So you want to work at Goldman Sachs? You're not alone. The high-profile bank's summer internship is ultra competitive. Lucky for you, we've got some advice. Here are tips for applying from Goldman's head of recruiting.
3. Big bets at the New York Stock Exchange. Insider's Hayley Cuccinello has a first-person account of a women-only poker night held by BNY Mellon at the NYSE to celebrate International Women's Day. More on how she learned "if it's worth betting, it's worth raising."
4. Venture capitalists are a real-life version of the Spider-Man meme. VCs are starting to turn on each other over who is to blame for the collapse of Silicon Valley Bank. Here's why tensions are high in the once-friendly community.
5. More allegations waged against Carta's CEO. A new filing from former Carta CTO Jerry Talton accuses CEO Henry Ward of being "erratic, self-absorbed," along with a litany of misdeeds. The filing is in response to a lawsuit by Carta that depicted Talton as an incompetent and disgruntled employee. Get all the juicy details here on the ongoing litigation between the two sides.
6. Hey everybody, come hear how good we sound! Insider's Dakin Campbell and I spoke on a LinkedIn audio event about the Silicon Valley Bank saga and the winners and losers. Check out some of the best clips here.
7. Startup employees and early investors are looking to take the money and run. With the IPO and M&A market for tech startups at a complete standstill, some people with equity are willing to cash in their shares at a discount. More on the activity taking place in the opaque secondaries market.
8. This "trip" could save your life. Meet the top venture investors who are betting big on using psychedelics for medical treatments. These 14 VCs are backing companies developing compounds of MDMA and psilocybin.
9. Some places where your dollar goes a long way. If you make $100,000 a year in NYC, it's actually like you make only $36,000. How fun! Check out 10 cities with the best cost of living.
10. The best frozen meals from Trader Joe's. Speaking of saving a couple bucks, skip the takeout and check out these frozen meals from TJ's. We reviewed 15 different dishes here. Pro tip: The cauliflower gnocchi is legit if you're looking to watch your calories.
Curated by Dan DeFrancesco in New York. Feedback or tips? Email email@example.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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