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Economy After Silicon Valley Bank Shut Down; Controversial Willow Oil Drilling Project, Most Intense Baby Race. Aired 4-4:10a ET
Aired March 14, 2023 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COY WIRE, CNN 10 ANCHOR: Hello. It`s Wednesday, dudes. #YourWordWednesday. Follow me at Coy Wire on Insta, Snapchat and TikTok, and put your unique
vocabulary word in the comments section of my most recent posts. And we`re going to choose a winner to work into tomorrow`s show.
I am so grateful to be here with you today. We begin with continued coverage of the economy. Yesterday, we brought you all of the news on
Silicon Valley Bank. When the bank was shut down by regulators this week, it became the second biggest bank failure in history in the United States.
Now, here`s how it all happened. Last week, SVB announced that it suffered a $1.8 billion loss and that it urgently needed to raise more capital.
Well, the news didn`t go over well, and SVB ended up losing more than $160 billion. And as stock plummeted, the panicked customers created what`s
called a bank run, rushing to withdraw their assets. And, well, with so many people trying to take all their money out at once, the bank couldn`t
keep up with demand and regulators were forced to shut it down.
Silicon Valley Bank`s customers withdrew $42 billion from their accounts in a 10-hour span on Thursday. Now, think about this. That would be like $4.2
billion per hour, or more than a million dollars per second. No wonder the bank couldn`t keep up. We`ll hear more now on what happened from CNN
Business Correspondent Christine Romans.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Don`t look now, but there`s something funny going on over there at the bank, George. I`ve never really seen one, but that`s got
all the earmarks of being a run.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: The classic scene from, "It`s A Wonderful Life" dramatizes the panic involved in a run on the
bank. It happens when there`s a loss of confidence in the bank, and that leads to large withdrawals.
The bank can`t pay everyone who wants their money all at once, and it fails. During the Great Depression, thousands of banks failed 9000, to be
exact, taking $7 billion worth of customers assets with them. That`s why the new deal included laws to ensure deposits and boost confidence in
financial institutions. The Federal Deposit Insurance Corporation, the FDIC, was created in 1933, and today covers up to $250,000 per depositor at
FDIC insured banks.
Actual bank failures still happen. There were a lot during the Great Financial Crisis in 2008, but in recent years, just a handful every year,
and none in 2021 and 2022. That streak broke in March of 2023, Silicon Valley Bank, a prominent lender to tech startups, collapsed after questions
about its liquidity started piling up. That caused customers to start withdrawing their money, essentially sparking a run on the bank. When SVB
couldn`t raise enough capital to cover customer demand, regulators stepped in and took control of the bank.
The danger with a bank run is that panic can spread to other banks. It`s called contagion.
UNIDENTIFIED MALE: Day one, there were two people, and then four, and then 16. In three months, it`s a billion. That`s where we`re headed.
ROMANS: So what starts as a problem at a single bank can quickly turn into a crisis for the entire system. That`s what happened during the Great
Financial Crisis in 2008. And it`s why the collapse of Silicon Valley Bank, the second largest U.S. bank failure of all time, has Wall Street on edge.
(END VIDEOTAPE)
WIRE: Ten second trivia.
In 1867, the U.S. bought what 600,000 square mile territory for less than two cents per acre?
Louisiana, Alaska, Florida or Texas?
Now the largest state in the U.S., Alaska is bigger than Texas, California, and Montana combined.
And up next, we`re headed to Alaska where this week the Biden administration approved a controversial oil drilling project called the
ConocoPhillips Willow Project.
The move is making some climate advocates angry and could set the stage for a court challenge in the future. The project is a decades long oil drilling
venture in the National Petroleum Reserve on the north shore of Alaska, which is owned by the federal government.
The planned site holds up to 600 million barrels of oil. The approval is considered a victory for Alaska`s government and a coalition of native
tribes who feel the drilling venture is a much-needed new source of revenue and jobs for this remote region.
But climate groups and some Alaska natives argue that the project will hurt the country`s climate goals and pose health and environmental risks. We`ll
hear now from CNN National Correspondent Rene Marsh who has more.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: At this point, the only way that this project can be stopped is if --
RENE MARSH, CNN NATIONAL CORRESPONDENT: On TikTok and Instagram calls for President Biden to stop Willow Project. An urgent call that`s gone viral to
block a controversial Alaska oil drilling project.
UNIDENTIFIED FEMALE: Please help stop Willow.
MARSH: The videos ranking up tens of millions of views, spurring more a million letters to the White House and more than 3 million signatures to a
change.org petition.
ELISE JOSHI, GENZ FOR CHANGE: In order to stop Willow, people need to know about Willow.
MARSH: 20-year-old Elise Joshi, a senior at the University of California, Berkeley, is one of the social media activists.
JOSHI: -- will not just impact Alaska, it will not just impact this country, it will impact the world. But the amount of carbon emissions that
it will emit, we will see an increase in frequency and intensity of natural disasters.
MARSH: ConocoPhillips Willow Project would be located in northwest Alaska on the National Petroleum Reserve, federal land roughly the size of
Indiana. The project would tap as much as 600 million barrels of oil, but it would take years for it to make it to market. Its messy politics for
President Biden, pitting his climate promises against the desire to produce energy at home and lower gas prices.
Nagruk Harcharek`s family has also lived in the region for generations. He supports the project. His nonprofit represents two dozen native
communities, corporations and local governments who say the project would be an economic boon and help the U.S. wean off of foreign oil.
NAGRUK HARCHAREK, THE VOICE OF THE ARCTIC INUPIAT: The economics that a project like this would bring into the region, mainly to the North Slope
borough in the form of taxes, to help provide and maintain first world conditions.
(END VIDEOTAPE)
WIRE: Let`s head on over to North Carolina, where there is some heated competition at the halftime of a Tar Heels basketball game. A race called
Diapers to Dorms Dash. Adorable babies crawling towards their parents, waiting at the finish line for a chance at winning $529 for their education
fund. Bring it on, baby. Our Jeanne Moos is on the call.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT: It was a baby race that had pulses racing. Parents were psyched.
UNIDENTIFIED MALE: Hi Lyla.
MOOS: Babies were wide eyed.
UNIDENTIFIED MALE: Crawl babies, crawl.
MOOS: And thereof, it was half time at a University of North Carolina basketball game. Lyla instantly took the lead. Continued towards someone
else`s mom instead of her dad.
UNIDENTIFIED FEMALE: But she`s going to another parent. Lyla`s going to a different house.
UNIDENTIFIED FEMALE: Lyla was so, so stinking cute.
MOOS: And that`s coming from one of Lyla`s rivals. Lyla made it just inches from the finish but stopped dead despite pleas from the announcer.
UNIDENTIFIED FEMALE: Lyla, please. Please, just touch it.
MOOS: Another contestant made his move to pass. Lyla then plopped down, even bopped a bit, and finally turned the wrong way.
UNIDENTIFIED FEMALE: No, no, no.
MOOS: Wonder some considered this the most intense baby race ever. And then Lyla did the unthinkable. And just as she reversed course, a dark
horse entered the fray.
(On camera): Is she a fast crawler?
UNIDENTIFIED FEMALE: Well, funny enough is she only started crawling maybe a week, week and a half before that baby race.
MOOS: Nine-month-old Brexley Dennick`s (ph) strategy was to start slow. So slow, her dad had to throw his watch down the court and hope she`d follow.
It worked. And once Brexley got going --
UNIDENTIFIED FEMALE: She doesn`t give up, which is great, and I hope she can keep doing that for the rest of her life.
MOOS: To lure her over the finish, Brexley`s mom did what most of the other parents tried waving the phone.
All that crawling earned the winner a $529 check for her future education fund. But this was its an education on how we`re all doomed to end up on
our knees looking for our phones for the rest of our lives.
(END VIDEOTAPE)
WIRE: All right, now, if those babies refuse a nap after that, are they resisting arrest? And remember to submit your vocab words for
#YourWordWednesday. Last week`s word was gregarious, meaning sociable.
Now to my favorite part of the day for today`s special shout out, we are traveling all the way to Africa showing some love to West Nairobi School in
Nairobi, Kenya. We see you and we hope you and everyone watching around the world have a wonderful one.
We are so grateful to be able to learn with so many people from all over the world. Thanks for subscribing and commenting on our CNN 10 YouTube page
to submit to your school for a shout out.
I`m Coy Wire, and we are CNN 10.
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