Good morning. US stock futures rose in Wednesday morning trading as investors turned more optimistic that the contagion risk to the banking sector would be contained.

"If we use prediction as the measure of a model, traditional finance makes precisely wrong predictions"

Richard Thaler

Top News

Manage your risks better!

WHAT: The head honcho of the top consumer financial watchdog agency Rohit Chopra isn't impressed by the recent spate of failures of mid-size banks and he's letting his thoughts be known! In fact, he said the recent failures highlight the need for better risk management and regulation across the industry.

WHY: Chopra, head of the Consumer Financial Protection Bureau told a gathering of bankers in Las Vegas that regulators were looking at liquidity, interest rate management and stress testing to prevent further shocks to the banking system.

SBF hit with fresh indictment charges

WHAT: Another day, another fresh set of charges against FTX co-founder Sam Bankman-Fried. This time, federal prosecutors allege Bankman-Fried dished out tens of millions of dollars in bribes to at least one Chinese government official.

WHY: The indictment alleges that SBF and others "directed and caused the transfer" of at least $40 million in cryptocurrency "intended for the benefit of one or more Chinese government officials in order to influence and induce them"

Probe into SVB failure launched

WHAT: The US Federal Reserve's Office of the Inspector General (OIG) has decided to do some detective work on Silicon Valley Bank's recent bust. An OIG spokesperson spilled the beans that an investigation into the cause of the bank's collapse has been formally launched.

WHY: The review will assess the board's and Federal Reserve of San Francisco's supervision of the failed lender. SVB, who's collapse triggered a crisis of confidence in the banking sector was eventually acquired by First Citizens BancShares.

In Other News

Buy Now, (Apple) Pay Later!

 WHAT: Looks like Apple is about to get into the "Buy Now, Pay Later" game, but with their own special twist -- their tweaking the existing model by removing the option to pay with a credit card.

WHY: Since the start of the pandemic, the option to "Buy Now, Pay Later" has skyrocketed in popularity, especially among young and low income consumers who may not have ready access to traditional credit.

Alibaba to split up

WHAT: China's big cheese of online commerce is making some major moves! Alibaba Group just announced that they're slicing up their massive $220 billion empire into 6 different business units.

WHY: The move frees up the Chinese company's main divisions — from e-commerce and media, to the cloud — to operate with more autonomy and potentially laying the foundation for a series of future IPOs.

From Amazon to AMC...

WHAT: The folks at Amazon might be about to go on a shopping spree — apparently investment advisers and the entertainment bigwigs at the firm are exploring the possibility of acquiring the AMC cinema chain.

WHY: Amazon last year closed its $8.5 billion deal for MGM, adding the company to its portfolio of businesses to beef up its Prime Video streaming service amidst intensifying competition.

Key Economic Events

• Wednesday - No Major Economic News

• Thursday - Fed President Collins Speaks

• Friday - Consumer Sentiment

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