With brief, occasional, italicized and sometimes gratuitous commentary…
• The Financial Times has a story about how the collapse of Silicon Valley Bank (SVB) is having an impact on the wine business because the lender was a "crucial pillar to vintners" in Napa and Sonoma, so much so that SVB had a wine division focused on the industry.
"When it collapsed, SVB was sitting on $1.2 billion of winery loans," FT writes. "Now its clients worry about where their funding will come from as they grapple with higher costs of doing business and the worsening impacts of climate change. Their worries are well-founded. The wine business is notoriously risky, low-margin and painstakingly slow. One reason it worked for SVB was the prestige it conferred."
The question is whether the acquisition of SVB will alleviate these concerns. CNBC reports this morning that the U.S. Federal Deposit Insurance Corporation (FDIC) has announced that First Citizens Bank will buy Silicon Valley Bank’s deposits and loans." That may resolve worries about current loans, but it remains to be seen whether First Citizens Bank will be as willing to be a lender in the future.