Evening Update: U.S. President vows stiffer bank rules in the wake of SVB’s collapse
Good evening, let’s start with today’s top stories:
Biden vows new bank rules following Silicon Valley Bank’s collapse
In the wake of the Silicon Valley Bank collapse late last week, U.S. President Joe Biden has declared the American banking system “safe” and vowed stiffer bank regulation. Regulators had been forced to step in with a series of emergency measures after the SVB and Signature Bank shutdowns threatened to trigger a broader crisis.
The managers of the banks will be fired, Biden said, and investors will lose money. The U.S. Federal Deposit Insurance Corp. said it had transferred all SVB deposits to a newly created bridge bank and that all depositors would have access to their money beginning this morning.
In Canada, the Office of the Superintendent of Financial Institutions took control of the technology financer’s operations here yesterday, announcing plans to wind it down, potentially by selling the business.
Meanwhile, bond markets have made a dramatic reassessment of future rate moves by central banks in the wake of the SVB failure and bailout – including decent odds that the Bank of Canada could make a quarter-point cut at its next meeting on April 12. And it’s no longer a given that the U.S. Federal Reserve will hike its key rate by half a percentage point next week.
- If you’re renewing a mortgage or buying a house, the collapse of Silicon Valley Bank is the best news in ages – Rob Carrick
- The takeaway for investors from the SVB crisis? Get ready for deflation, more pain in stocks, and a rally in long-term bonds – David Rosenberg
- Silicon Valley Bank collapse shows our financial system is just a collective delusion – John Rapley
Explainer: What happened to Silicon Valley Bank, and what its collapse means for banks and investors
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Volkswagen picks Ontario for its first North American EV battery plant
Volkswagen Group will build its first North American battery factory in St. Thomas, Ont., one of the biggest milestones to date in this country’s efforts to establish itself as a major player in electric-vehicle manufacturing.
It’s a decision that will make waves across the auto sector, especially given aggressive competition from U.S. President Joe Biden’s administration to compete for such investments.
It is not yet known how much money the federal and Ontario governments have put on the table for the project.
Jesuits of Canada reveals list of clerics credibly accused of sexual abuse
The Jesuits of Canada, a religious order of the Catholic Church, has published the names of 27 priests and brothers who it says have been credibly accused of sexually abusing minors, one of the few Catholic entities in the country to release such a list.
The release, based on a review of thousands of documents dating back to the early 1950s, includes the names of Jesuits and where they were assigned. Although 24 of the men are dead, the three who are still alive are in their 80s and 90s.
China diverts some researchers to Canada after U.S. visa denials, CSIS says
Beijing is using a “workaround strategy” for postgraduate researchers to study cutting-edge technology at Canadian and U.S. universities after Washington began denying visas for some Chinese students on the grounds that they might steal intellectual property with military uses, according to a Canadian Security Intelligence Service report.
The report said the strategy sends some scholarship students to Canada from China with the aim of gaining access to critical high tech. The Chinese government’s game plan includes training these Chinese citizens on how to avoid drawing too much attention when studying abroad.
Opinion: To really tackle Beijing’s interference, Canada must engage with the Chinese diaspora – Ai-Men Lau
The latest developments in the war in Ukraine
The International Criminal Court is planning to seek the arrest of Russian officials for forcibly deporting children from Ukraine and targeting civilian infrastructure, a source told Reuters today, in what would be the first international war crimes cases arising from Moscow’s invasion. The source said the arrest warrants could include the crime of genocide.
On the ground, both sides described relentless fighting in and around Bakhmut, a small ruined city in eastern Ukraine that has become the main focus of a Russian winter campaign.
In Russia, a senior lawmaker has introduced a bill to push back the age of conscription to compulsory military service to 21-30 years from the current 18-27 years.
Read more: Moldova protests fan fears Russia is trying to stir unrest in republic
ALSO ON OUR RADAR
BBC ends sportscaster’s suspension: The BBC has resolved its dispute with top sportscaster Gary Lineker and committed to reviewing its social media guidelines for staff. The British broadcaster and Lineker have been in a standoff for nearly a week over comments he made that criticized the government’s new measures to crack down on illegal immigration.
Oscars recap: While Everything Everywhere All at Once garnered most of the major prizes last night at the Academy Awards, there was plenty for Canadians to celebrate: Sarah Polley won best adapted screenplay for Women Talking, based on Miriam Toews’s novel. Navalny, directed by Toronto filmmaker Daniel Roher, won for best documentary feature. Montreal-based Adrien Morot was part of the team recognized for best makeup and hairstyling for The Whale. And dual citizen Brendan Fraser took home the best actor statue for The Whale. Read more: Sarah Polley wins, Jimmy Kimmel flails and every highlight everywhere all at once
Junos tonight: Marvel superhero star Simu Liu returns as host of the Juno Awards tonight, where five key awards will be handed out. The Weeknd is vying for two more Junos after being the big winner at a pre-broadcast ceremony on Saturday that also saw Arkells pick up their sixth group of the year award.
Drake releases tour dates: The rapper’s It’s All a Blur tour this summer includes two Canadian stops – Montreal on July 14 and Vancouver on Aug. 28. Live Nation says additional dates, including Toronto, will be announced later.
Sliding bank shares dragged the S&P 500 lower with investors worried about contagion from the Silicon Valley Bank collapse, but trade was choppy and some sectors benefited from hopes the Federal Reserve could ease up on interest rates hikes. The Canadian benchmark stock index tumbled amid hefty declines in energy and financials sectors, as domestic bond yields plunged the most in years.
The Dow Jones Industrial Average fell 90.5 points or 0.27 per cent to 31,819.14, S&P 500 lost 5.83 points or 0.15 per cent to end at 3,855.56, and the Nasdaq Composite gained 49.95 points or 0.45 per cent to 11,188.84.
The S&P/TSX Composite Index dropped 186.02 points or 0.94 per cent to 19,588.90. The loonie traded at 72.81 U.S. cents.
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The eight excuses of Liberal MPs to duck a public inquiry (and none of them are good enough)
“What would the United States and our other Western allies think if we were to air the China meddling scandal in public? For one, they might think Canada was finally treating the national-security threat posed by Beijing with the seriousness it deserves.” – Globe editorial
TODAY’S LONG READ
Canada’s young caregivers are an invisible, and increasingly strained, safety net for an aging society
Nicholas Goberdhan was only 15 when his mother fell into crisis, following years of cyclical bouts with mental health issues. An only child, he was the one his mother leaned on.
When his mother was briefly hospitalized, Goberdhan didn’t know who to turn to. Feeling shame, he didn’t disclose the situation to his high school friends. After his mother’s health stabilized, he went away to university. Still, fears about another breakdown dominated his thoughts. He’d call every day to check on her, and still does.
Young caregivers remain a largely invisible group. They help parents, grandparents, siblings and other relatives facing problems related to aging, chronic illness, disability, mental health or substance use issues. One in four young people help more than one person at home, according to Statistics Canada data, which found 38 per cent had already been doing this work for four years or longer. Read Zosia Bielski’s full story.
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