First Republic Bank sold to JPMorgan in a fire sale
NEW YORK, NY (AP) - Regulators seized First Republic Bank on Monday morning, making it the country's second largest bank failure. They then sold its deposits and assets to JPMorgan Chase to try and stop the banking turmoil which has dominated this first half of the year. This is the third midsize failure in less than two month. The only larger bank failure in U.S. history was Washington Mutual, which collapsed at the height of the 2008 financial crisis and was also taken over by JPMorgan in a similar government-orchestrated deal.
Fed will raise rates again. What happens next?
WASHINGTON, AP -- The Federal Reserve will raise its benchmark rate for the tenth time on Wednesday. This is the latest step in the year-long effort by the Fed to curb inflation at the fastest pace in 40 years. But Wall Street traders and economists will be interested in the Fed's statement and what Jerome Powell says at a press conference. They are more concerned with what comes next. On that note, they could be disappointed. Economists believe Powell will hint at the Fed's upcoming pause on rate hikes. Powell won't necessarily give a clear indication that the Fed will stop raising rates after this week.
Delivery drivers are now more afraid of gig workers after recent attacks on them
Companies that provide food and ride-hailing services say violent incidents are rare in the millions of trips made each week by gig workers. Three attacks in Florida last week sent tremors through some app-based drivers who, they claim, have been demanding better protection for years from companies that are geared more towards customers than employees. According to the U.S. Bureau of Labor Statistics' occupational injury and fatality data, ride-hailing drivers and delivery drivers are among the most dangerous occupations. The data shows that while most of the deaths and injuries occur in traffic accidents, drivers are at greater risk for assaults.
American and Southwest pilots escalate strike threats
Southwest pilots are also voting on the possibility of a strike. It doesn't necessarily mean that pilots will be walking off their jobs anytime soon. But it is a way to increase pressure on airlines to negotiate new contracts with the pilots' unions. The American pilots union said that nearly all of its members voted, and that 98% of those who did voted gave their consent to the union calling for a strike. Federal law makes it difficult for airline unions conduct legal strikes.
FDIC raises insured deposit limits for business
NEW YORK, NY (AP) - The Federal Deposit Insurance Corp. recommends that the U.S. rethink their decades-old policy to only insure up to $250,000 of bank deposits. In a report published on Monday, the FDIC recommends that business accounts be insured at higher levels. This change would need to be approved by Congress. The FDIC appears to be openly acknowledging that it is seeking ways to calm down both the markets and depositors as it deals with the third U.S. Bank Failure this year. First Republic Bank, which was seized by regulators and bought by JP Morgan Chase on Monday, became the second-largest failure in history.
May Day: France pensioners see anger at the rally of workers around the world
PARIS (AP), Workers around the globe, squeezed by inflation, and demanding economic justice, marked May Day with protests. The workers demanded Monday higher salaries, shorter working hours, and better working conditions. May Day is celebrated in many countries to celebrate the rights of workers. The events this year had a larger turnout than previous years, as COVID-19 limitations were loosened. Opposition was centered around how economic plans by governments will affect workers. Unions in France organized massive protests against President Emmanuel Macron’s recent decision to raise retirement age. In Indonesia, protesters called on the government to repeal a law that they claim would benefit businesses at the expense workers and the environment.
Environmental groups sue FAA for SpaceX Texas rocket launch
CAPE CANAVERAL (AP) - Wildlife and environmental groups are suing the Federal Aviation Administration over SpaceX's launch from Texas of its giant rocket. The lawsuit was filed in Washington federal court on Monday. SpaceX's Starship rocketed up to 24 miles before it exploded over the Gulf of Mexico a few weeks ago. The rocket's auto-destruct system blew up the rocket as it spun out-of-control. The groups claim that the FAA did not fully consider the environmental impact of the Starship Program near Brownsville, Texas. The FAA declined to comment on the lawsuit.
Yellen claims the US debt ceiling could be reached as early as June 1.
WASHINGTON, D.C. (AP) -- Treasury secretary Janet Yellen informed Congress that the U.S. could reach its debt ceiling as soon as June 1 if it does not increase or suspend the limit. Yellen urged Congress to act as quickly as possible to protect the full faith of the United States and its credit by addressing the $31.4 trillion legal borrowing limit. Treasury said on Monday that it also plans to increase borrowing in the quarter from April to June of this year.
Lordstown is concerned that it could fail because Foxconn investor gets excited
Lordstown Motors claims it faces failure because Foxconn wants to withdraw from an agreement that would have invested up to $170 millions in the commercial electric car startup. Lordstown Motors said that in a Monday regulatory filing, it received a Foxconn Ventures letter on April 21, stating that the company had breached the investment agreement due to a Nasdaq delisting notice. Foxconn said it would also look to terminate the investment agreement if the breach was not resolved within 30 day.
The S&P500 fell by 1.61 points or less than 0.1% to 4,167.87. The Dow Jones Industrial Average dropped 46.46 points or 0.1% to 34,051.70. The Nasdaq Composite fell by 13.99 points or 0.1%, to 12,212.60. The Russell 2000 index for smaller companies increased by 0.22 points or less than 0.1% to 1,769.21.