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Snacks / Monday, May 08, 2023

On to the next one… JPMorgan Chase CEO Jamie Dimon said last week that "this part" of the banking crisis is over after America’s largest bank took over First Republic (the second-largest US bank failure ever). Later, regional-bank shares plunged on concerns over PacWest: like other recently flopped banks, it has lots of uninsured deposits (aka: accounts over $250K). Last week the FDIC proposed broadening deposit insurance for businesses, which could prevent more SVB-style bank runs. If you know your deposit is safe, you’re less likely to panic.

Mining your business… The White House pitched a 30% tax on crypto miners' electricity usage in a stated bid to blunt the industry's environmental impact. (FYI: Last year US miners used as much energy as TVs). But according to crypto cos like Riot and Marathon Digital, the tax could drive business overseas. The proposal follows a brutal year for miners (picture: plunging crypto prices, soaring energy bills) that saw several file for bankruptcy, and comes just as bitcoin regains steam. The OG blockchain saw record transactions just last week.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.