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What to know about the fall of Silicon Valley Bank · Apple News Today

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  Shumita Basu, Narrating: Good morning! It's Monday, March 13th. I'm Shumita Basu, this is "Apple News Today." On today's show, another life-threatening storm is headed for California and Nevada, what to know about recent moves by Congress to ban TikTok and the big winners and best moments of the Oscars.
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  But first, how did the go-to bank for tech start-ups collapse so suddenly and spectacularly? A lot has happened since Silicon Valley Bank failed on Friday. It was taken over by federal regulators, who now promise that all deposits in the bank will be guaranteed, even those over the usual $250,000 limit for FDIC coverage. Regulators say they'll do the same for another collapsed firm, Signature Bank, which served the cryptocurrency industry. The government says no U.S. taxpayers will be on the hook for any losses.
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  Today, HSBC announced it's buying the British arm of Silicon Valley Bank for one pound. The U.K. government made a similar promise as the U.S., that deposits would be protected without using taxpayer money.
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  American regulators are taking steps beyond the usual measures in an attempt to prevent ripple effects. This morning, just before U.S. markets opened, President Biden said that the situation is under control, and more will be done if needed.
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  President Joe Biden: Americans can have confidence that the banking system is safe. Your deposits will be there when you need them. Small businesses across the country that have deposited accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills.
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  Banking analysts say it doesn't appear likely that there will be broad impact on the system as a whole. Silicon Valley Bank focused heavily on tech startups, an industry that's been in a lot of trouble lately. Other banks typically have a more diverse client base, so they can withstand tough times in a single industry. Especially now, when the economy is generally strong.
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  The collapse of Silicon Valley Bank, SVB, happened pretty fast, so it's worth taking a pause to explain what did happen there. It involves the companies bond portfolio and the interest rate environment.
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  Let's start with an analogy and work our way back out to the details. Think of it like this: SVB bought a bunch of ice cream when it was hot outside. Seemed like a good idea at the time, but then there was a blizzard, and SVB needed money. And nobody wants to buy ice cream in a blizzard, so it had to sell the ice cream at a big loss. The blizzard in this case, is rising interest rates. And the ice cream is bonds.
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  Now remember, a bond pays a fixed amount of money over time, so it's worth less and less as interest rates go up, which they have been lately. Once the tech world heard that SVB was selling off bonds and taking big losses, companies worried that it would collapse and started pulling money out. This is how bank runs can be self-fulfilling. When enough people think there's gonna be a bank run and start to pull their money out, then there is a bank run.
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  The bottom line is, the fall of SVB might involve new, innovative businesses, but it fits an old pattern. It's a reminder of how quickly things can fall apart when people all try to pull their money out at once.
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  More than 17 million people are under flood watches across California and Nevada. Yet another atmospheric river is bringing more rain for people who have already been hit by flooding, snow and mudslides lately. The downpour adds to water from melting snow, meaning dangerously high flooding. At least two people were killed as a result of recent storms. Emergency crews have rescued hundreds of people. "CNN" talked with residents of Felton, California, who were just settling back in at home after a previous evacuation.
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  Felton Resident: Now we have to go home, pack our stuff and leave once again when we were just able to come back a couple weeks ago.
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  President Biden has approved an emergency declaration for California that frees up federal funds to help residents who are reeling from one severe weather event after another.
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  Over the past week, lawmakers have inched closer to passing legislation that would clear the way to ban TikTok in the U.S. Now, right off the bat, let's say what's not likely to happen. You or I won't get in trouble for scrolling around on the app. But a ban could stop American companies from doing business with TikTok. And that could mean it would be removed from app stores, which would make it a lot harder for you to use it on your phone.
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  One bill in Congress would give Biden the authority to ban TikTok. The other would give the commerce secretary the ability to investigate tech companies based in countries considered "foreign adversaries." That includes China, where TikTok's parent company, ByteDance, is based. The company says it doesn't take orders from China's government and would not give it American user data.
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  There's already a U.S. ban of TikTok on federally-owned devices. "Vox" senior politics reporter Christian Paz told us how the app is wrapped up in the tense U.S.-China relationship right now. The spy balloon and support for Russia are among the issues.
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  Christian Paz: So much of the momentum that we're seeing right now in Capitol Hill is coinciding with a general consensus among leaders that China as a country should be viewed in competition with the U.S. And TikTok just happens to be a really visible way to allow leaders in Congress to have a very visual target when they're talking about China's threats to the U.S. and privacy concerns and national security concerns.
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  Paz points out, members of Congress don't have the strongest record when it comes to keeping up with tech platforms.
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  Paz: It wasn't too long ago that members of Congress were trying to explain the internet as a series of pipes, and so there's definitely skepticism when it comes to the ability for Congress to actually have oversight of big tech because many of them don't understand how it works.
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  Later this month, the CEO of TikTok will testify on Capitol Hill for the first time. So lawmakers will have the chance to question him on a big stage.
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  Let's end with a little bit of the Oscars, where it was a big night for "Everything Everywhere All at Once." It racked up seven awards, including Best Picture. Its star Michelle Yeoh was the first Asian to win Best Actress.
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  Michelle Yeoh: For all the little boys and girls who look like me watching tonight, this is a beacon of hope and possibilities. This is proof that dreams dream big, and dreams do come true. And ladies, don't let anybody tell you, you are ever past your prime. Never give up.
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  Jamie Lee Curtis and Ke Huy Quan also won for their supporting roles. In his acceptance speech, Quan talked about coming to the U.S. from war-torn Vietnam.
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  Ke Huy Quan: My journey started on a boat. I spent a year in a refugee camp. And somehow, I ended up here on Hollywood's biggest stage. They say stories like this only happen in the movies. I cannot believe it's happening to me. This, this is the American dream!
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  The editors here at Apple News have pulled together a collection of Academy Awards coverage with the best moments, best jokes, best red-carpet looks. Actually, I shouldn't say "red carpet." It was a different color this year, more of a beige-y cream. You can find all of that and more in the Apple News app.
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  And if you're already listening in the News app right now, stick around. We've got a narrated article coming up next from "The New Yorker." Masha Gessen reports on how Russian journalists in exile are reporting on the truth of the war in Ukraine. They're trying to tell a different story than the pro-Putin media back home. But working abroad isn't easy. So, sit back, listen to that and I'll be back with the news tomorrow.
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