This article is adapted from today’s Morning Wire Afternoon Update. To listen to the podcast version, click here.
Run On The Bank!
Silicon Valley Bank has failed after a classic “run on the bank.”
SVB, the California bank which mostly loans money to high-risk tech companies, experienced a capital crisis this week, which was caused by high interest rates. In an effort to control inflation, the Fed has been raising the fund’s rate, which in turn made many bank assets lose their value.
As of Friday, the Federal Deposit Insurance Corporation had taken over the bank and assured customers that they would have “full access” to their insured deposits.
Norfolk Southern CEO Testifies
Norfolk Southern CEO Alan Shaw testified before the Senate Committee on Environment and Public Works on Thursday and apologized for his company’s role in the toxic train derailment in East Palestine, Ohio.
“I want to begin today by expressing how deeply sorry I am for the impact this derailment has had on East Palestine and the residents of other communities,” he said. “I am determined to make this right.”
Senators from both sides of the aisle excoriated Shaw for the disaster.
Biden Classified Documents
The Biden classified documents saga continues — as a new letter reveals that the National Archives told Congress it obtained nine boxes of materials from the Boston office of a personal attorney to President Joe Biden. A letter sent to a pair of Republican senators this week reportedly divulged new details about the inquiry into Biden’s handling of government documents, specifically about Patrick Moore, the attorney identified as the one who initially found classified materials while packing up the president’s former think tank office in early November. Acting Archivist of the United States Debra Wall wrote in the letter that the National Archives was informed Biden’s counsel began their review of the materials in the Penn Biden Center in October 2022 — earlier than previously known — and had moved some boxes to Boston at some point afterward.
The letter was addressed to Sens. Chuck Grassley (R-IA) and Ron Johnson (R-WI), who are requesting more information.
Democratic Senator Mark Warner, chairman of the Senate Intelligence Committee, warned U.S. intelligence community leaders on Wednesday that a lack of transparency to Congress about the documents might jeopardize the Biden administration’s efforts to renew a surveillance law this year. “This trust relationship has to go two ways,” he said.
Spring Break Risks
As America’s college kids enter spring break, many are traveling to tropical places like Mexico. The State Department already advised against Americans traveling to certain parts of the country due to drug cartel activity and potential kidnappings, but one former FBI official is warning that even staying in secure and exclusive resorts could be dangerous.
“The problem with these self-contained resorts — and they have all kinds of security and protection and everything – [is] you have to get to the resort,” he told Fox News host Jesse Watters. “So the danger is getting off the plane or bus or train and getting from the transportation hub to the actual resort where you have protection.”
He added: “En route, you’re in danger, just like these Americans that were killed in Matamoros — because once they crossed the border they were on their own.”
College Attendance Dropping
Fewer young people are opting to go to college — that’s according to data reported by the Associated Press. From 2019 to 2021, college matriculation among high school seniors dropped from 66% to 62%. Generous sign-on bonuses and weariness with remote learning are thought to be contributing to the trend.
The Oscars Sunday
Hollywood is preparing for the 95th Oscars this Sunday, where films like “Everything Everywhere All At Once,” “Avatar: The Way of Water,” and “The Fabelmans” will vie for the coveted best picture award. The ceremony will begin at 8 p.m. eastern and will be hosted by Jimmy Kimmel, who is emceeing for the third time.
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