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While Silicon Valley Bank was seized by the Federal Deposit Insurance Corporation after its value collapsed following a bank run last Friday, the rest of SVB Financial Group will be sold off in an effort to repay creditors and large depositors, though it will not cover everyone who lost money in the collapse. A legal battle is expected to follow. Earlier this week, a shareholder lawsuit filed in the US district court for the Northern District of California alleged that several of SVB’s quarterly and annual financial reports had not fully disclosed the risks being communicated by the Federal Reserve that looming interests rate hikes “had the potential to cause irrevocable damage to the company.” 

While the FDIC only covers customer deposits under $250,000, the administration of President Joe Biden stepped in after SVB’s collapse to guarantee those exceeding that amount, rankling critics who see it as a bailout masquerading as a regulatory action. An inordinately large percentage – 94% – of SVB’s deposits exceeded the $250,000 cutoff, about twice the typical share at other banks. Senate Republicans pointed out that the banks that didn’t fail would be unfairly penalized when their own rates increased to cover the hefty payouts to depositors, costs which would ultimately be passed onto the taxpayer, putting them on the hook for a bailout after all. New York-based Signature Bank collapsed just days after SVB, triggering fears of a wider contagion even as the president attempted to reassure Americans that their finances were safe. Similar to SVB, 90% of its deposits exceeded the FDIC cap.

A massive 20,000-gallon tank was found to be leaking ammonia at a facility in Auburndale, Florida early on Wednesday morning, a city spokesperson told a local Fox affiliate, noting that all employees were evacuated from the plant. Residents living in a two-block area near the plant were also asked to take shelter following the discovery, though the order was lifted several hours later, after fire crews successfully capped the leak. Clean-up operations were reportedly completed sometime around 3:30pm. There have…

According to the Russian Defense Ministry, Shoigu told Austin that the incident was caused by the Americans violating the airspace restriction declared by Russia, with all the proper international notifications in place. Shoigu called US drone flights off the Russian coast “provocative in nature” and risked an escalation of tensions in the Black Sea. 

While Russia does not desire such a development, it will “continue to respond proportionately to all provocations,” Shoigu said. He added that the two nuclear powers “must act as responsibly as possible,” which includes keeping a military channel open to discuss any crisis.

Speaking at a Pentagon press briefing, Austin confirmed that he made the call, and said it was “important that great powers be models of transparency and communication.” However, he insisted the US would “continue to fly and to operate wherever international law allows.”

Responding after Canadian Foreign Affairs Minister Melanie Joly said Ottawa is seeking “potential regime change in Russia” in comments to reporters last week, Moscow’s Ambassador to Canada Oleg Stepanov asked how Western nations would respond if the roles were reversed. “Quite perplexed to hear from Canadian Foreign Minister Melanie Joly that her goal is ‘regime change’ in Russia. Is this how she instructs the Canadian Embassy in Moscow?” Stepanov said on Monday. “And by the way, what reaction would we expect if, for example, someone in Moscow had said that Russia’s goal is ‘regime change’ in Ottawa?”

Antonov met with Assistant Secretary of State for European and Eurasian Affairs Karen Donfried, who protested the “unsafe and unprofessional intercept” of the drone that resulted in its loss. “We consider this incident a provocation,” Antonov told reporters after the meeting. He said he told Donfried that US drones, planes and ships had no business being that close to Russian borders. “Could you imagine what the reaction of the US media or the Pentagon would be, if such a drone…

Neither the US nor Russia gave any coordinates for the incident. The Americans argued the drone was “operating within international airspace” over the Black Sea. The Russians said the drone was inside the restricted airspace established for the special military operation, of which everyone was properly notified months ago. Unconfirmed reports in the Russian media put the drone’s location about 60 kilometers (37 miles) southwest of the Crimean port of Sevastopol.

The UAV was flying towards the Russian border without a transponder active, in clear violation of the restricted area established for the conduct of the special military operation, the ministry said. Two interceptors were dispatched to investigate.  “As a result of sharp maneuvers around 9:30am Moscow time, the MQ-9 unmanned aerial vehicle went into uncontrolled flight, lost altitude, and collided with the water surface. The Russian fighters did not use weapons, did not come into contact with the UAV, and…

“In order to bring peace and stability closer, we, of course, need to show the consolidation of our society, composure. When the enemy sees that our society is strong, internally sound, consolidated, then, without any doubt, what we are striving for will happen: both success and victory,” Putin declared. Protecting Russians living in Ukraine from persecution by the Kiev regime remains among the top goals of Moscow, Putin reiterated, adding that he has repeatedly met people from Donbass who “are exactly the same as us.” Following the collapse of the Soviet Union, Moscow tried to build up solid and mutually beneficial ties with Kiev, but the efforts ultimately flopped, the president admitted. “Russia has been patiently trying for decades to mend relations with the modern Ukrainian state, but the situation changed in 2014, when a Western-prompted coup d’etat took place,” he said. Even after that, Moscow spent years trying to peacefully resolve the civil conflict in then-Ukrainian Donbass, he concluded.

Russia has its own financial messaging system, SPFS, which can act as a substitute for SWIFT in the domestic market. While its coverage is still much smaller than that of SWIFT – which boasts 11,000 financial organizations globally – the spread of SPFS has been gaining speed in recent months.

When asked about a spillover effect from the collapse of US lenders, which has led to a global stock rout, Peskov said problems in the American banking system cannot affect Russia in any way. “Our banking system, of course, has, let’s say, certain connections with some segments of the international financial system, but for the most part it is under illegal restrictions,” he said.

However, Peskov added that sanctions have been “a blessing in disguise” because Russia is “to a certain extent immune to the negative impact of the crisis that is now unfolding across the ocean.” 

The agency cited concerns over the lenders’ reliance on uninsured deposit funding and unrealized losses in their asset portfolios. “The review for downgrade reflects the extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows,” it stated. Moody’s also slashed the debt ratings of collapsed New York-based Signature Bank deep into junk territory, withdrawing future ratings for the insolvent lender. The downgrades come while US bank stocks have continued to plummet despite the government’s measures to support lenders and prevent more bank runs. First Republic Bank has led the sell-off, with its share price nosediving more than 60% on Monday, forcing a brief halt in trading due to volatility. Western Alliance Bancorp lost over 47% while Zions Bancorp declined by about 26%. Dallas-based Comerica dropped 28% and UMB lost more than 15%.

“The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse,” said the co-author of the best-selling book ‘Rich Dad Poor Dad’, “because the bond market is crashing.” Kiyosaki explained on Monday that the bond market, which is bigger than the stock market, is the economy’s “biggest problem” and will put the US in “serious trouble.” “The US dollar is losing its hegemony in the world right now. So, they’re going to print more and more and more of this… trying to keep this thing from sinking,” he explained.

Refusing to let Ukrainian President Vladimir Zelensky address the Academy Awards ceremony while handing an Oscar to a documentary about Russian activist Alexey Navalny means politics and movies do mix after all, adviser Mikhail Podoliak tweeted on Monday. “If Oscar is outside of politics how should we understand the documentary manifesto Navalny where internal Russian politics is overflowing?”

The package comes within the framework of the so-called Integrated Review, a program document envisioning ‘Global Britain’ and originally adopted under former PM Boris Johnson. The money is set to be funneled to all 42 language services of the BBC World Service and will be used to “support English-language broadcasting,” as well as to “counter disinformation,” the foreign office explained, implying the funds will be specifically used to counter Russia.  “The refreshed Integrated Review concludes that democracies like the UK…

An analysis by Global Affairs Canada argues that Saudi Arabia is the “principal guarantor” of affordable oil for Western countries, as well as an important market for Canadian companies, The Breach reported on Monday, citing the seven-page document. Canadian weapons are crucial to maintaining Riyadh as an “integral and valued security partner,” the report claimed.  The analysis stands in contrast to Trudeau’s statements suggesting that he would like to cancel a CAN$14.8 billion ($10.8 billion) contract to export military vehicles…

Defense spending this year must focus on the blockade threat, earmarking funds to stockpile spare parts for F-16 fighter jets and other weaponry, the Taiwanese Defense Ministry said on Monday, in a report seeking parliamentary budget approval. Since last year, the ministry has been reviewing its strategic fuel reserves and its capacity to repair equipment, said Reuters, which obtained a copy of the report.

The Taiwanese military will also need to replenish its stores of artillery shells and rockets “to strengthen combat continuity,” the ministry said. China’s military has been conducting joint force operations “with an eye to controlling strategic choke points and denying access to foreign forces.”

According to Andrew Adams, the group has focused on identifying those who are helping Russians to avoid sanctions and export controls. “I think it can be quite effective to be sanctioning facilitators,” Adams said, calling them “professional sanctions evasion brokers.” A recent report from the Treasury Department showed that more than $58 billion worth of sanctioned Russian assets have been blocked or frozen worldwide so far. Adams pointed out that KleptoCapture aims to sell the frozen yachts and other property of sanctioned Russians, despite the legal difficulties, and use the proceeds for the benefit of Ukraine. He noted, however, that this would be done in accordance with the law.