5 things to know before the stock market opens on Wednesday, March 29

Bespoke's Paul Hickey says stock market turbulence reflects investor uncertainty

Here are the most important news items investors need to start their trading day:

1. stumble

2. It could be worse

Federal Reserve Board of Supervisors Vice Chairman Michael S. Barr (right) testifies before the Senate Banking, Housing and Urban Affairs Committee on March 28, 2023 in Washington, DC.

Win Mcnamee | beautiful pictures

The withdrawal from Silicon Valley Bank sent shockwaves throughout the global banking system. And it could be even worse, according to the Federal Reserve’s vice president of oversight, Michael Barr. After depositors withdrew $42 billion from SVB on March 9, another $100 billion in deposits was set to be pulled On March 10, Barr spoke before a Senate hearing on the bank’s collapse. That would wipe out nearly all of the bank’s deposits. Instead, regulators intervened to close the bank, and the FDIC eventually secured all the deposits. Barr, along with FDIC Chairman Martin Gruenberg and Treasury Department official Nellie Liang, will Talk to House legislators Wednesday.

3. Another fee for SBF

Former FTX CEO Sam Bankman-Fried, who faces fraud charges related to the collapse of the bankrupt cryptocurrency exchange, leaves Manhattan federal court in New York City, February 16, 2023.

Eduardo Munoz | Reuters

This is not the reward Sam Bankman-Fried had hoped for. Federal prosecutors on Tuesday add another fee to the series of alleged crimes of the fallen crypto king: bribery. The former boss of FTX, also known as SBF, paid at least $40 million in bribes to “one or more Chinese officials” in an attempt to free several accounts belonging to SBF’s Alameda Research. According to prosecutors, SBF and his team then used the unlocked funds to promote their dubious business. Bankman-Fried, who is living with his parents in California on tight bail, has pleaded not guilty to multiple federal charges. His trial will begin in October.

4. Dimon interviewed in Epstein’s costume

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., during a hearing of the Senate Banking, Housing and Urban Affairs Committee in Washington, DC, U.S., on Thursday, Feb. September 22, 2022.

Al Drago | Bloomberg | beautiful pictures

JPMorgan Chase CEO Jamie Dimon agreed sit to settle in two lawsuits against the bank involving the late child sex trafficker and financier Jeffrey Epstein, a source familiar with the matter told CNBC’s Hugh Son. Epstein – who has powerful friends like Microsoft’s Bill Gates, Britain’s Prince Andrew, former US President Bill Clinton and Donald Trump – is attached to JPMorgan mainly through his relationship with the former chief executive. top Jess Staley. In contrast, JPMorgan, sued Staley over his link to Epstein. The bank is seeking about $80 million in refunds — and holding Staley accountable for any payments the company has to make as a result of the lawsuits.

5. It’s Time for Sanders vs. Schultz

Senator Bernie Sanders (I-VT) (L), Starbucks CEO Howard Schultz

Reuters (L) | Getty Images (right)

Call it the Battle of Brooklyn. In this corner, Bernie Sanders of Midwood, a pro-labor US senator representing Vermont. And in this corner, Howard Schultz of Canarsie, the former CEO of Starbucks, is anti-union. Both will go from head to toe during the Senate Health, Education, Work and Pensions Committee hearing, which begins at 10 a.m. ET Wednesday. Starbucks initially objected to having Schultz, who is still on the coffee company’s board, testify in defense of the company’s labor practices. Then, Sanders, the committee’s chairman, threatened to subpoena, prompting Starbucks and Schultz to agree. Sanders has accused Schultz of leading a campaign to break the union when bartenders at nearly 300 Starbucks cafes voted to organize. Schultz, who prides himself on Starbucks’ progressive reputation, dismissed that criticism. And who knows? Maybe he’ll bring back some olive oil coffee to break the ice at the hearing.

— Sarah Min, Hugh Son, MacKenzie Sigalos, Rohan Goswami, and CNBC’s Amelia Lucas contributed to this report.

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