jtrent238 test blog: Evening Briefing: Silicon Valley Bank fails

March 10, 2023

By Matthew Cullen

Good evening. Here's the latest at the end of Friday.

Silicon Valley Bank was a big lender to tech start-ups.Noah Berger/Agence France-Presse — Getty Images

1. Silicon Valley Bank collapsed, raising concerns about other banks.

The bank, a lender to some of the biggest names in the technology world, essentially ran out of money — becoming the largest bank to fail since the 2008 financial crisis. The Federal Deposit Insurance Corporation took control of $175 billion in customer deposits, creating a new bank that it said would be operating by Monday.

The extraordinary collapse fueled investor concern that other banks could face similar troubles. Shares in other midsize banks fell sharply, while larger institutions proved more insulated from the fallout.

In other economic news, new data showed that U.S. job growth remained solid last month, with employers adding 311,000 jobs. It was a better-than-expected showing, continuing a trend that has frustrated the Federal Reserve in its efforts to rein in stubborn inflation.

Complicating the picture, the data also showed wage growth moderating to its slowest monthly pace since February 2022 and the unemployment rate ticking up slightly.

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A photograph released by Saudi Arabia showed Musaad al-Aiban, a Saudi minister, left, and Ali Shamkhani, a senior Iranian security official, in Beijing.Saudi Press Agency, via Reuters

2. Saudi Arabia and Iran agreed to re-establish diplomatic ties in a deal brokered by China.

After years of open hostility, the two countries announced that they would reactivate a lapsed security cooperation pact and that each would reopen an embassy in the other country.

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The breakthrough came as a surprise to many observers, and some warned that the countries' differences might prove too great to overcome, but it also could be the first step in a major realignment in the Middle East. The news prompted particular anxiety in Israel, which has sought to form a regional alliance against Iran.

China's role in hosting the talks highlighted its growing importance in the Middle East, a region where the U.S. has played a major role.

Snow piled several feet high in the in the Sierra Nevada mountains today.Mario Tama/Getty Images

3. Some towns in California ordered evacuations as a winter storm pummeled the state.

The dangerous storm — known as an atmospheric river — was battering central California, with more heavy rain and snow forecast for the weekend. Residents across parts of the central coast and the San Joaquin Valley were on high alert for flash flooding. Here's what the storm looks like from above.

More than 39 million Californians were under weather warnings or advisories, and dozens of counties were under states of emergency. At least two people died.

In elevated areas, homeowners were racing to clear their roofs out of concern that the snow would act as a sponge, soaking up rain and becoming heavy enough to cause collapses.

Donald Trump said that the New York prosecutors are engaged in a "witch hunt" against him.Haiyun Jiang/The New York Times

4. A potential indictment of Donald Trump poses challenges for prosecutors.

The revelation that New York prosecutors have indicated that Trump could soon face criminal charges raised a number of questions about the contours of a potential case against a former president and current presidential candidate. He would be the first former American president to be indicted in a criminal case.

While the facts are striking — $130,000 in hush money paid to a porn star — the case against Trump would most likely hinge on an untested and risky legal theory involving a complex interplay of laws. Conviction is far from assured and would most likely carry no mandatory prison time.

In other news about politics, Gov. Ron DeSantis of Florida attracted crowds during a visit to Iowa, testing his ability to connect with voters who have had little exposure to him outside his home state.

"Rust Red Hills" by Georgia O'Keeffe.Taylor Glascock for The New York Times

5. A struggling university wants to sell its artworks to raise millions.

Facing a decline in enrollment, Valparaiso University in Indiana announced plans to sell several acclaimed paintings from the school's art museum. The sale — which would include Georgia O'Keeffe's "Rust Red Hills," the crown jewel of the collection — would raise $10 million needed to renovate two freshman dormitories, which the school sees as crucial to securing its future.

The plan has divided the university. Richard Brauer, a retired art professor who served as the director of Valparaiso's Brauer Museum of Art, said he wanted his name removed from the museum if the school went through with the sale.

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A carbon capture system reduced one building's overall emissions by about one-quarter.Hiroko Masuike/The New York Times

6. City buildings are a major polluter. Here's a novel solution.

One building in Manhattan is using an emerging technology to capture the carbon dioxide produced in gas boilers, cool it into a liquid and eventually seal it into concrete blocks. It's just one solution for reducing a building's emissions, but developers say it's much easier to implement than an entirely new electric heating system.

For large towers in New York City, installing a carbon capture system might actually be more of a financial decision than an environmental one: Fines can cost hundreds of thousands of dollars per year.

In other climate news, hundreds of people have moved to Duluth, Minnesota, to escape the effects of a warming planet.

Martin Schneider is a firefighter who moonlights as a top pitcher for the Czech Republic national team.

7. A Czech firefighter is getting ready to pitch to one of baseball's biggest stars.

Martin Schneider, a 37-year-old member of the local fire brigade in Olomouc, Czech Republic, has never played an inning in the M.L.B. But tomorrow, he is likely to take the mound against Japan's national baseball team and its superstar, Shohei Ohtani.

Those kinds of matchups are what make the World Baseball Classic so interesting. When the global baseball tournament was last held, in 2017, the U.S. took the championship. This year, the Americans are again well positioned to win, with the perennial M.V.P. candidate Mike Trout leading the lineup.

In all, 20 teams — the most ever — qualified for the W.B.C. this year, playing in Phoenix, Miami, Taichung, Taiwan and Tokyo until March 21.

Michelle Yeoh in a scene from "Everything Everywhere All at Once."Allyson Riggs/A24, via Associated Press

8. "Everything Everywhere All at Once" is set for a big night at the Oscars.

Our award season expert, Kyle Buchanan, expects the oddball sci-fi film to pull off a sweep at the Academy Awards on Sunday and win the Oscars for best picture, best director, best actress for Michelle Yeoh and best supporting actor for Ke Huy Quan. Other contenders for best picture include "Top Gun: Maverick" and "All Quiet on the Western Front."

A win for "Top Gun" could be a boon to the broadcast, which has lost viewers as the Oscars have celebrated more niche films.

You can stream many of the top contending movies at home and compare your Oscar ballot with those of other Times readers.

For more: This year's red carpet isn't going to be red.

Michael Graydon & Nikole Herriott for The New York Times. Prop Stylist: Kalen Kaminski.

9. What to do this weekend.

Cook: With spring around the corner, these are the recipes we can't wait to make.

Watch: A Times documentary about a notorious Hollywood fixer premieres tonight.

Read: Our critics recommend nine new books, including a novel about two eccentric royals.

Decorate: A 1970s magazine has creative ideas for living in small quarters.

Binge: All eight episodes of Kerry Washington's new show were released today. Our TV critic recommends it.

Outrank: Take this week's News Quiz and see how you stack up with other Times readers.

Walk: Just 10 minutes of moderate exercise daily could lead to a longer life.

Leon Neal/Getty Images

10. And finally, how to spring forward without falling down.

For most people in the U.S. and Canada, this Sunday will be the shortest day of the year, as clocks jump ahead an hour and daylight saving time brings us brighter evenings.

It's a practice that dates back several decades, yet it still throws off the schedules of many people — so much so that many scientists and politicians have been urging the country to stop it.

To help you make the change, we gathered a few tips: Consider shifting both your bedtime and your wake-up time slightly earlier beginning tonight, allowing a more gradual transition instead of losing a full hour all at once.

Have a well-adjusted weekend.

Brent Lewis compiled photos for this briefing.

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Here are today's Mini Crossword, Spelling Bee and Wordle. If you're in the mood to play more, find all our games here.

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