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1 | Credit Suisse shares slid nearly 25% to an all-time low on Wednesday, prompting its stock to get halted multiple times after the bank's largest shareholder, Saudi National Bank, said it could not provide more financial assistance to the firm due to regulatory restrictions. Investors have been concerned about liquidity risk at the bank as it has struggled to keep up with "significantly higher withdraws," amounting to $120B in the fourth quarter. Earlier this week, Credit Suisse reported "material weaknesses" in its financial reporting process for 2021 and 2022. Q: Is Credit Suisse at risk for a liquidity crisis? Share your thoughts at Inside.com. |
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2 | Michael Burry, the legendary "Big Short" investor, dismissed concerns over an SVB-induced financial contagion, tweeting, "This crisis could resolve very quickly. I'm not seeing true danger here." However, Burry did warn that "next, we find our WorldCom," indicating he expects another major bank failure to follow SVB's collapse, as authorities discovered WorldCom's accounting fraud in the wake of the Enron scandal. |
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3 | Meta's "year of efficiency" is well underway as the tech giant executes its second round of layoffs, with plans to cut 10,000 roles. In November, Meta laid off 11,000 employees in the first of a series of steps to "become a leaner and more efficient company." Investors responded positively to Meta's newfound fiscal responsibility pushing its shares 7% higher before market close on Tuesday. Q: Will the second round of layoffs make Meta more efficient? Let us know at Inside.com. |
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4 | First Republic Bank's turbulent week continued today as its shares plunged nearly 20% after S&P Global and Fitch Ratings downgraded its credit rating, undoing a 20% gain on Tuesday. Despite having access to $70B in unused liquidity, investors remain concerned that First Republic could fail like SVB, causing its stock to plummet 60% on Monday. |
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5 | Shares of 3M hit a 52-week low on Wednesday, making it one of the worst-performing industrial stocks in 2023, thanks to the company's ongoing legal troubles. More than 200,000 lawsuits charge Aearo Technologies and parent 3M with providing "dangerously defective" earplugs to the military that lead to hearing loss and tinnitus in servicemembers and veterans. A Florida federal court has consolidated the individual lawsuits, creating the largest mass tort in U.S. history. |
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6 | T-Mobile has agreed to acquire Ka'ena Corp, owner of the Ryan Reynolds-backed mobile service provider Mint Mobile, for $1.35B, giving it access to the latter's pay-as-you-go customer base. Shares of T-Mobile traded slightly after the announcement on Wednesday. |
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7 | Food manufacturing company Kellogg, which announced plans to split into three separate public corporations in July, has named two of its spinoffs: Kellanova and WK Kellogg. Kellanova will keep snacking brands like Pringles and Cheez-Its and trade under Kellogg's "K" ticker, while WK Kellogg will take Kellogg's cereal unit and use a soon-to-be-announced ticker. |
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