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COY WIRE: Hello.
It's Wednesday, dudes, #yourwordwednesday.
Follow me @coywire on Insta, Snapchat, and TikTok.
And put your unique vocabulary word in the comment
section of my most recent post.
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.
- 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: 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, 9,000 to be exact, taking $7 billion
worth of customer's assets with them.
That's why the New Deal included laws
to insure 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.
- Day one, there were two people,
and then four, and then 16.
In three months, it's a billion.
That's where we're heading.
CHRISTINE 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 US bank failure of all time,
has Wall Street on edge.
COY WIRE: 10 second trivia.
In 1867, the US bought what 600,000 square mile territory
for less than $0.02 per acre?
Louisiana? Alaska?
Florida?
Or Texas?
Now the largest state in the US, Alaska,
is bigger than Texas, California,
and Montana combined.
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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
Renee Marsh who has more.
- At this point, the only way that this project
can be stopped is if--
RENE MARSH: 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.
- Please help stop Willow.
RENE MARSH: The videos racking up tens of millions of views,
spurring more than a million letters to the White House,
and more than three million signatures
to a change.org petition.
ELISE JOSHI: In order to stop Willow,
people need to know about Willow.
RENE MARSH: 20-year-old Elise Joshi,
a senior at the University of California Berkeley,
is one of the social media activists.
ELISE JOSHI: Will not just impact Alaska.
It will not just impact this country.
It'll impact the world.
With the amount of carbon emissions that it will emit,
we will see an increase in frequency and intensity
of natural disasters.
RENE 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.
It's 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 US wean off of foreign oil.
NAGRUK HARCHAREK: The economics that a project like this
would bring in to the region, mainly to the North Slope
borough in the form of taxes, to help provide and maintain
first-world conditions.
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COY 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.
JEANNE MOOS: It was a baby race that had pulses racing.
Parents were psyched.
- Hi, Lyla.
JEANNE MOOS: Babies were wide eyed--
- Crawl, babies.
Crawl.
JEANNE MOOS: And they're off.
It was halftime at a University of North Carolina
basketball game.
Lyla instantly took the lead, continued towards someone
else's mom instead of her dad.
- But she's going to another parent.
Lyla's going to a different house.
- Lyla was so, so stinking cute.
- [BABY BABBLING]
JEANNE 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.
- Lyla, please.
Please, just touch it.
JEANNE MOOS: Another contestant made his move to pass Lyla,
then plopped down, even bopped a bit,
and finally turned the wrong way.
- No.
No.
JEANNE MOOS: No wonder some considered this the most
intense baby race ever.
And then Lyla did the unthinkable.
- No.
No.
JEANNE MOOS: And just as she reversed course,
a dark horse entered the fray.
Is she a fast crawler?
- Well, funny enough is she only started
crawling maybe a week, week and a half before that baby race.
JEANNE MOOS: Nine-month-old Brexley Denick's 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--
- She just doesn't give up, which is great.
And I hope she can keep doing that for the rest of her life.
JEANNE 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 itself an education on how we're all
doomed to end up on our knees looking for our phones
the rest of our lives.
COY WIRE: All right.
Now if those babies refuse a nap after that,
are they resisting a rest?
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
your school for a shout out.
I'm Coy Wire.
And we are CNN 10.
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