🍋 UBS to the Rescue

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Good Morning! Warren Buffett reportedly signed a contract with the White House and will discuss investing in the banking sector.

Meanwhile, the UBS-Credit Suisse deal is being closely watched, and JPMorgan analysts believe it may be enough to stave off a broader sell-off. However, the recent news of Credit Suisse's $17 billion write-down of its risky ATI bonds down to $0 has left its investors feeling far from happy.

Ski resorts are making record use of artificial snow this season as some areas receive less accumulating snow than years prior. And Amazon is facing a lawsuit over allegations that it failed to disclose its biometric tracking practices to customers in its NYC stores.

As promised, please find the VC interview guide here and VC Fund Model here.

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1. Story of the Day: UBS to the Rescue

UBS came to the rescue of its long-time rival Credit Suisse yesterday. The acquisition was brokered by the Swiss government and at $3.3 billion dollars, represents a 99% decline in Credit Suisse’s price-per-share from its all-time highs.

As one of the world's leading financial centers, Switzerland has a lot at stake in this rescue operation. Credit Suisse has a 167-year-old history but has lost investor confidence after numerous scandals and high-interest rates. 

Credit Suisse’s clients have withdrawn over $100 billion over the past three months, and experts worried the bank teetered on the brink of collapse.

However, this rescue operation comes at a cost. UBS now finds itself in the unenviable position of owning a mess. The Swiss National Bank has committed over $100 billion of liquidity assistance and a $10 billion guarantee for potential losses, but some analysts don’t think that will be enough.

Takeaway: One of the biggest losers in this deal? American investment banking. UBS’ chairman says he’ll dramatically shrink Credit Suisse’s investment bank, which means even more jobs could be on the table. Expect UBS to take more conservative risks going forward than its former rival.

2. Markets Rundown

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Stocks closed lower on banking concerns.

Movers & Shakers

• (+) FedEx ($FDX) +8% after cost-cutting boost, positive outlook.

• (–) Credit Suisse ($CS) -7% before the bank was acquired by UBS.

• (–) First Republic ($FRC) -33% after S&P cut the bank deeper into junk, said $30B infusion not enough.

Private Dealmaking

• PhonePe, an Indian fintech, raised $200 million from Walmart

• Nimble, an autonomous logistics and AI robotics startup, raised $65 million

• Envisics, an in-car holographic tech developer, raised $50 million 

• Fairmatic, a commercial auto insurance startup, raised $46 million

• SpotDraft, a contract lifestyle management startup, raised $26 million

• Kresus, a developer of a crypto super app, raised $25 million

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3. Top Reads

• Why investor brains are hardwired for bank runs (CNBC)

• SVB employees blame remote work for bank failure (Axios)

• How Bitcoin is benefitting from the banking crisis (Fox)

• Why U.S. regulators let banks lose billions (YF)

• Apollo says bank crisis will tip US into a hard market (BB)

• What are banks good at? (Axios)

• SVB fail is a double whammy for tech startups (CNBC)

• The math behind the new super commute (WSJ)

• Can society adjust at the speed of AI? (Vox)

• The way we work is about to change (CNN)

4. Shortform Book of the Day: Best Version Ever

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While other personal development programs offer short-term progress, the M.A.G.I.C. formula focuses on meaningful, lasting change. Best Version Ever is a lifelong roadmap to help you become extraordinary.

“What would you do if you had nothing holding you back?”

5. Short Squeez Picks

• Wall Street jargon you need to know

• How morning routines make you mentally sharp

• Time doesn’t have to be money

• ChatGPT prompts that will save you hours at work

• The problem with your dying AirPods

Download VC Fund Model

The VC Fund model is intended as just that — a model and framework for fund managers to test different inputs and scenarios. Grab your copy below for an overview of the key assumptions and inputs to the model.

GoingVC, the venture ecosystem for emerging VCs, has developed a full VC fund model with input option to see different scenario outcomes for you to understand the different fund size and its inputs/outputs!

Grab your copy here.

6. Daily Visual: Americans Pile into Treasuries

Number of people buying T-bills on TreasuryDirect

_{Source: Axios}

7. Daily Acumen

Herbert Simon on the difference between the expert and the novice:

"A large part of the difference between the experienced decision maker and the novice in these situations is not any particular intangible like “judgment” or “intuition.”

If one could open the lid, so to speak, and see what was in the head of the experienced decision maker, one would find that he had at his disposal repertoires of possible actions.

That he had checklists of things to think about before he acted; and that he had mechanisms in his mind to evoke these, and bring these to his conscious attention when the situations for decisions arose."

8. Memes of the Day

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