Stocks sank on Friday, as Silicon Valley Bank (SVB) was shut down by regulators after failing to raise capital. This is the second-largest bank failure since the Global Financial Crisis.
The Federal Deposit Insurance Corporation (FDIC) has taken control of the bank under a new entity Deposit Insurance National Bank of Santa Clara (DINB). All of SVB’s insured deposits were transferred to DINB.
Overall, S&P 500 fell 1.5% to 3,862, while NASDAQ decreased 1.8% to 11,139.
Tweet of the Day
The problem Silicon Valley Bank faces today is VERY different than the 2007-2009 banking crisis.$SIVB was thriving. Credit losses are fairly low. Its deposits TRIPLED from 2019 to ‘21.
How’s that a problem?
It sounds great, right?
Well, it’s a Wonderful Life…
— Compound248 💰 (@compound248) March 10, 2023
Chart of the Day
Here is the ten-year chart of Eli Lilly (LLY) as of February 22, 2023, when the stock was at $329.
Eli Lily discovers, develops, manufactures, and markets human pharmaceuticals to approximately 120 countries worldwide. Its products include therapies for diabetes, oncology, immunology, and neuroscience.
Eli Lilly (LLY) plans to cap the price of its insulin to $35 a month. It also has a weight loss drug that has the potential to become one of the biggest blockbusters of all-time. The drug is called Tirzepatide, and is already in use for Diabetes under the brand name Mounjaro. Tirzepatide is expected to gain FDA approval in 2023.
LLY is part of the Conservative Growth Portfolio.