Morning! We’re The Neutral, your one stop shop for news without an agenda. Today we’re covering a banking bankruptcy, peace in the Middle East, and much more.

Big Stories

Another Bank Goes Belly Up

Silicon Valley Bank (SVB) was shut down by banking regulators Friday morning — making it the largest closure of a banking institution in America since 2008.

What Happened in 7 steps:

1. The Fed continued raising interest rates to fight inflation

2. Investors became nervous and started pulling out cash to meet their liquidity needs

3. SVB began to run out of cash and sold their $21 billion bond portfolio at a $1.8 billion loss to cover customer withdrawals

4. SVB then tried to sell $2.25 billion worth of stock to cover its funding issues and the stock plummeted 60%

5. Venture capital firms advised clients to pull their money from the bank, spooking the investors lined up to buy the stock sale

6. The efforts to raise money to cover customer withdraws imploded and the company considered selling itself to cover funding

7. The FDIC stepped in, shut down SVB, and placed it under its receivership — the FDIC will look to sell SVBs assets and compensate uninsured depositors through future dividend payments

Zoom Out: Smaller startups who bank with SVB are scrambling to find ways to make payroll after their accounts were frozen — more than 93% of the SVB’s $161 billion in assets have been locked up by the FDIC. Others are taking advantage of the competitive opportunity — Fintech startup, Brex received billions of dollars of SVB deposits Thursday.

Strange Bedfellows

After seven years of conflict, Iran and Saudi Arabia have agreed to restore ties and reopen embassies during talks in Beijing. They also plan to reinstate a security pact that includes; cooperation on terrorism, drug smuggling, and money laundering as well as restoration of a trade and technology deal from 1998.

Moving forward…Saudi Arabia hopes that the agreement with Iran will accomplish two things: guarantee security in regards to the Iranian nuclear program and secure a peace agreement with the rebel Houthis to free Saudi Arabia from the Yemen War.

Business & Economy

*US Economy added 311,000 jobs last month — beating economists earlier prediction of 225,000. 

*Spin that record like it’s 1987. Vinyl sales exceed CDs for the first time since 1987.

*The Rich ease up on their home buying spree: US luxury home sales have dropped 45% — the lowest in 10 years.

Politics

*DeSantis teases Presidential run: Florida Governor, Ron DeSantis visited Iowa Friday to promote his new book, sparking further speculation over when he might make his 2024 presidential bid.

*China stays under Xi’s control. Xi Jinping will remain China’s president for an unprecedented 3rd term. He will have a number of challenges to tackle in his new term including a floundering economy, tense relations with the US and its allies over Taiwan, and dealing with the backlash Beijing has received over the backing of Russia.

Sports

*Alpine queen: Mikaela Shiffrin ties Alpine skiing world cup wins record with her 86th victory.

*More Injuries for KD: Phoenix Suns superstar is likely to miss at least three weeks with an ankle injury sustained during warmups Wednesday night. The Suns were on a 3-game winning streak since KD joined the team.

*Deep Dive: College Wrestling Teammates fight a bear and live to tell the tale. Read more

Extras

*Ranch Lovers: Ranch dressing flavored ice cream is coming to a Walmart near you.

*Cocaine Cat: A wild cat with cocaine in its system has found a home at the Cincinnati Zoo.

*Yes Chef — walk in the shoes of a Sous Chef at one of America’s most influential restaurants. (via YouTube)

*Daylight slavings: “Spring forward” gracefully this year with these 6 tips.