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News of the day for March 28, 2023

A security guard at Silicon Valley Bank monitors a line of people outside the office on March 13, 2023 in Santa Clara, California. Days after Silicon Valley Bank collapsed, customers are lining up to try and retrieve their funds from the failed bank. The Silicon Valley Bank failure is the second largest in U.S. history.

Justin Sullivan / Getty Images

Banking regulators will face tough questions from Congress today while the U.S. brings a case against the world’s largest cryptocurrency exchange. Here’s what investors need to know today.

1. Congress to Grill Regulators Over Banking Collapse

Top U.S. banking regulators are scheduled to appear this morning before the Senate Banking
Committee to discuss the collapse of Silicon Valley Bank and Signature Bank. Witnesses will include FDIC Chair Martin Gruenberg, Fed Vice Chair Michael Barr, and U.S. Under Secretary of Treasury Nellie Liang.

2. Regulators Bring Case Against Cryptocurrency Exchange Binance

U.S. regulators sued Binance alleging the operator of the world’s largest cryptocurrency exchange and its founder Zhao Changpeng kept an illegal foothold in the American market and violated rules designed to prevent illicit financial activity. A Binance spokesperson called the CFTC’s actions “unexpected and disappointing,” saying the company had made “significant investments over the past two years to ensure we do not have U.S. users active on our platform.”

3. Alibaba Shares Jump After Announcing Plans to Split Up Divisions

Alibaba (BABA) shares are rising more than 6% in pre-market trading on a report the company plans to split its $220 billion empire into six main units that will individually raise funds and explore IPOs. The plan to split into units covering ecommerce, media, and the cloud would mark the biggest overhaul of China’s ecommerce leader since its inception more than two decades ago.

4. Lyft Shares Rise After Introducing New CEO

Shares of ride hailing company Lyft (LYFT) are up more than 5% in pre-market trading after the company announced it has hired board member David Risher as its new CEO. The founders of the company, Logan Green and John Zimmer, will step back from day-to-day management of the company.

5. Facebook to Lower Bonuses for Some Staff

Facebook reportedly plans to lower bonus payouts for some staff. Parent Meta Platforms says it will more frequently assess employee performance as part of a sweeping revamp that includes large job cuts.

Article Sources
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  1. Reuters. “US regulators to face sharp questions from Congress over bank collapses.”

  2. CNN. “The US case against Binance calls out one of the worst-kept secrets in crypto.”

  3. CNBC. “Alibaba to split into 6 units and explore IPOs; shares pop 9%.”

  4. Reuters. “Lyft shares jump as Wall Street welcomes CEO change.”

  5. Wall Street Journal. “Facebook Parent Meta Plans Lower Bonus Payouts for Some Staff.”

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