Silicon Valley Bank is no more. The tech industry’s go-to lender imploded in the second-largest bank failure in US history. After investor concerns about Silicon Valley Bank’s (SVB) solvency prompted a bank run, the Federal Deposit Insurance Corporation (FDIC) took control of customers’ deposits yesterday.

The collapse happened fast:

• SVB said Wednesday that it sold some of its assets at an almost $2 billion loss, sending investors and depositors into full freak-out mode.
• Its stock tanked over 60% the next day, and several prominent VC funds advised their portfolio companies to pull their deposits.

By Friday, the 40-year-old bank was toast.

Why did things go south?

SVB counted nearly half of all venture-backed US companies among its customers. That client list was a blessing when interest rates were low so startups were swimming in cash from VCs. Its deposits more than tripled between 2018 and 2021.

But when interest rates began to climb last year, deposits shrank and so did the value of the bonds it bought with depositors’ cash. Short sellers have been sounding alarm bells about risks to smaller banks for some time now. But SVB was particularly vulnerable as it parked an unusually high share of customers’ funds in bonds and mortgage-backed securities.

What this means for SVB depositors

So when, if ever, will all those startups see their $175 billion in deposits? Each customer is guaranteed to receive up to $250,000 per account from the FDIC, but they’ll have to wait for the sale of SVB’s remaining assets to see if they can get any more money back (and most will most likely have to make payroll way before then).

Some are getting creative: The toy store Camp offered a 40% discount with promo code “bankrun” to help it stay afloat while it waits for its cash to (hopefully) be returned.

Zoom out: SVB’s downfall sent shockwaves through the banking sector. But banks’ finances are in better shape now than they were in 2008, leaving experts optimistic that a full system meltdown is not on the horizon.—SK

The labor market is still hot. The US added 311,000 jobs last month, the Bureau of Labor Statistics said yesterday. It was more than expected, signaling a strong labor market despite months of interest rate hikes aimed at slowing growth to tame inflation. But it was a smaller increase in jobs than the US saw in January, and wage growth slowed slightly, too—so it’s still anyone’s guess what the Fed’s next move will be.

Iran and Saudi Arabia agreed to bury their beef. After seven years on the outs, the Middle Eastern rivals announced yesterday that they had decided to restore diplomatic relations and reopen embassies within two months. The two powers, largely at odds due to religious differences, have not only shunned each other but have also fueled conflicts around the region, including in Yemen. The deal to make nice was brokered with China’s help, a sign of its growing influence.

California is getting dangerously drenched. President Biden declared a state of emergency in California yesterday as yet another atmospheric river hit the state. The National Weather Service warned that the usually golden state will experience a “burst of heavy precipitation” this weekend and added that “areas that normally do not experience flash flooding will flood.” California is still recovering from a deadly storm in January and a blizzard last month.

Long gone are the days of puking rainbow filters. Instead, a TikTok filter called “Bold Glamour”—which contours users’ cheekbones, plumps their lips, and gives them Cara Delevingne brows—has been used in 18.5 million videos, most of which were posted in the last week.

The filter is being lauded for how convincing it looks…but also bashed for how morphing people’s facial features could impact their self-esteem.

How it works: Many speculate the filter uses new AI capabilities that TikTok rolled out last month (but TikTok hasn’t confirmed). While old-school filters map your 2D face onto a 3D model, resulting in glitches when you try to dab or whatever, the new generation of AI filters is built to stay flush with your skin. Videos featuring Bold Glamour show users rubbing their hands across their faces in shock and awe.

Not everyone hearts it: Psychologists warn that it could set people up for disappointment and dysmorphia. “When a person uses filters on most pictures, their authentic self tends to become subpar in their eyes,” psychologist Carolyn Rubenstein (who is not related to the Brew’s Abby Rubenstein) told Yahoo Life.—JW

P.S. Not to flex, but the Morning Brew Daily Show’s Toby Howell tried the filter before it was cool.

Like a trendy taco place on Melrose Avenue, the Academy Awards will be looking to do things a little differently tomorrow night.

Here’s what to expect while your Oscar party is sipping their Tártinis:

• The pre-show red carpet will not be red for the first time in 60 years. It’ll be “champagne,” and celebs will stand on it in a covered space. Organizers want the fanfare to feel like it’s happening at night, not at 3pm.
• Rihanna is performing her Oscar-nominated song.
• All 23 categories will be broadcast live, so buckle in for an even longer show than last year, when eight categories weren’t shown.
• Acceptance speeches from the most popular six categories will be almost instantly uploaded to TikTok, but all speeches will be shared on Twitter so we can all quote tweet them and say “so powerful <3.”

Why the Academy wants everyone, everywhere to watch the Oscars all at once: ABC has exclusive broadcast rights to the Oscars until 2028. The deal makes up roughly 80% of the Academy’s yearly revenue. But to ensure the Oscars will still be a worthy investment when that contract is up, viewership needs to start rebounding, or at least stop its free-fall. Only 16.8 million people tuned in last year (a 37% drop from five years ago), but that number jumped to almost 17.4 million moments after the infamous Slap incident.—MM

Stat: Vinyl records outsold CDs last year for the first time since 1987, with 41 million records flying off dusty shelves and only 33 million CDs sold, according to the Recording Industry Association of America. But vinyl’s victory doesn’t necessarily mean its fan base has extended very far past that guy who corners you at a party to insist that it’s the only correct way to listen to music. Streaming accounted for 84% of all music revenue in 2022, per the RIAA.

Quote: “To be abundantly clear, it is not a crime to give someone the finger.”

A judge in Quebec recently sounded off on the right of his typically polite compatriots to flip each other off, while acquitting a man who had been arrested for allegedly threatening and harassing a neighbor in part by raising his middle fingers. It may not be civil, Judge Dennis Galiatsatos wrote, but “flipping the proverbial bird is a God-given, Charter-enshrined right that belongs to every red-blooded Canadian.”

Read: These jobs are the most vulnerable to AI. (Futurism)

English to English translation: Apparently, the French love renaming Hollywood hits.

Follow the money: How to track your tax refund.

Work–life balance, mapped: See which countries have the most paid vacation days.

Free samples: The story of how AI can detect hidden samples in songs.

Get smarter: Can’t get enough of documentaries about science, history, tech, or travel? Curiosity Stream offers the deepest collection of films + shows from around the world. Take 25% off an annual subscription.*

^{*This is sponsored advertising content.}

Brew crossword: Take your mind off of bank collapses, beauty filters, and awards shows with today’s crossword. Play it here.

Open House

Welcome to Open House, the only newsletter section that never gets seasick. We’ll give you a few facts about a listing and you try to guess the price.

Today’s houseboat is on the adorably named Shrimp Road in Key West, Florida. It doesn’t have an engine, but who needs to go anywhere with a view like that? Amenities include:

• 1 bed, 1 bath
• Marble (looking) shower
• “Six approved life jackets” (By whom? We have no idea)

How much to float forever?

Does talking to your boss leave you in a cold sweat? No worries—Difficult Conversations at Work is a one-week online course that gives you the tools to effectively communicate with confidence. Reserve your spot now.

Sign up for Money Scoop and get free tips to boost your personal finance game. You’ll be saving and spending wisely in no time.

Amping up benefits? Enhancing company culture? HR Pros: Whatever you’ve lined up for ’23, HR Brew has you covered. Subscribe today.