Daily Wave | March 11, 2023

1.SVB in the Drains...

Silicon Valley Bank, a bank that lent money and provided banking services to tech companies, went bankrupt on March 10, 2023. The bank had grown quickly, but faced a lot of competition and regulatory challenges. It reported a loss of $1.1 billion in the last quarter of 2022 due to a surge in loan defaults and provisions, and was ordered by the Federal Reserve to raise more capital and improve its risk management practices.

The bank tried to sell some of its assets to raise capital, but it wasn't enough. The California Department of Financial Protection and Innovation seized the bank and appointed the Federal Deposit Insurance

Corporation as its receiver to protect the deposits of the bank's customers, which amounted to $75 billion. The bankruptcy of Silicon Valley Bank has left many of its customers, who are mostly start-ups and venture capitalists, uncertain.

2. EY Splits into two

EY, a professional services firm providing accounting and consulting services, recently unveiled a plan to bifurcate their business into two parts, one for auditing and the other for consulting. The move comes in response to concerns expressed by regulators and investors regarding conflicts of interest arising when a firm offers both services to the same clients.

However, the company's partners have hit a roadblock with regards to the division of the tax business between the two entities. The consulting team is vying for a larger share of the pie, as it is the more profitable option. On the other hand, the audit team argues that the tax business should remain with them since it is closely related to financial reporting.

This tussle has led to a delay in the implementation of the company's plan, which could hamper their growth prospects. Furthermore, EY had earmarked a substantial amount of $2.5 billion to acquire new companies for their consulting arm, but this has also been put on hold due to the ongoing dispute.

Well, one thing is for sure - the folks at EY have some serious decisions to make. Let's hope they can sort out their differences soon and get back to doing what they do best - crunching numbers!

3. Adani makes a comeback

Well, well, well, look who's back in the game! Adani Group, the Indian behemoth, has bounced back and how! Thanks to Rajiv Jain, a star investor who injected $1.9 billion in four Adani Group companies, their stocks have skyrocketed in the past week. Mr. Jain has brushed off the allegations against the group as baseless and driven by short-term interests.

And as if that weren't enough, the Supreme Court of India has asked the Securities and Exchange Board of India (SEBI) to wrap up the probe into the allegations of stock price manipulation and regulatory lapses in two months flat. On top of that, the court has appointed a panel to safeguard the interests of Indian investors.

If all this weren't enough to keep Adani Group on cloud nine, they have also announced new projects and contracts, such as bagging the rights to operate six airports in India and entering into an agreement with TotalEnergies to develop renewable energy projects. Looks like it's pretty easy to make a comeback when you've got billions in the bank. That's all for today, people. See you tomorrow!