There haven’t been a whole lot of reasons to pop Dom Pérignon bottles in the banking sector lately, but that probably changed yesterday when America’s biggest banks kicked off the corporate earnings season by revealing that they raked in massive profits last quarter.

Turns out the Fed rate hikes that spelled doom for smaller fries like Silicon Valley Bank and Signature Bank were a boon to the big potatoes since they could charge more for loans. With the money they made from lending shooting up, JPMorgan, Citigroup, and Wells Fargo all zoomed past expectations for Q1.

• JPMorgan, the biggest of the big, posted record revenues and saw its profits spike to $12.6 billion, 52% more than the same quarter last year.
• Citigroup, the third largest US bank, scored $4.6 billion in profit, 7% higher than in Q1 2022.
• Wells Fargo, the fourth largest, kept the hot streak going with a 32% increase in profits from the first quarter of ’22 to just under $5 billion.

That means the banking behemoths have made it through the chaos caused by the biggest bank failures since 2008 not just unscathed but stronger—though there’s some debate over whether they’ll be able to hang on to the many new deposits that came their way as customers fled from regional lenders.

But smaller banks are still struggling. And there were signs the three megabanks weren’t ready to declare total victory: They cautioned that credit is likely about to get more expensive and put aside a combined $2 billion in case a recession hits.

Big picture: While it was a good day to be too big to fail, JPMorgan CEO Jamie Dimon noted, “The storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks.”—AR

After seeing their mother struggle with depression, Forbes “30 Under 30” brothers Steve and Daniel Lee pioneered Aura, a mental wellness solution that can help anyone find peace.

Aura is already transforming the $100b mental wellness market. They’ve grown to over 7m users and 100k+ paying subscribers while attracting investments from legendary Silicon Valley investors like Cowboy Ventures and Berkeley SkyDeck, plus executives from Spotify, Facebook, Uber, MasterClass, and Apple.

With only 13 days left in this investment round, Brew readers have a chance to invest on the ground floor.

Why invest in Aura? Their marketplace model uses the same flywheel that fuels big names in tech. Top Silicon Valley investors are trusting Aura to become the #1 mental wellness company in the world.

Last call! Invest in Aura before the opportunity ends April 28.

Air Guardsman charged over documents leak. Jack Teixeira, the 21-year-old Massachusetts Air National Guard member suspected of leaking classified documents to impress teenagers on Discord, was charged yesterday under the Espionage Act with unauthorized retention and transmission of national defense information and unauthorized removal of classified information and defense materials. Together, the charges carry a maximum 15-year sentence. Teixeira, who has not yet entered a plea, is being detained by the government pending another hearing Wednesday.

SCOTUS keeps abortion pills available for now. Justice Samuel Alito yesterday blocked (until Wednesday) an appeals court ruling that would have limited the availability of mifepristone following a Texas federal judge’s reversal of the FDA’s approval of the medication. The case is considered the most significant abortion suit to come before the Supreme Court since it struck down Roe v. Wade and is also being closely watched by the pharmaceutical industry, but Alito’s preliminary decision does not necessarily reflect how the court will ultimately rule on the issues it raises.

Big Sky Country bans TikTok. The Montana legislature passed a bill yesterday that would block downloads of the popular app, becoming the first state to essentially ban TikTok while the federal government weighs doing the same nationwide. The bill is expected to be signed by the governor, who already forbade the app on state government devices. However, the law won’t affect people who already have the app downloaded, and it’s not clear how the ban will be enforced. Plus, experts point out that any cowboy influencer or Yellowstone recapper could just use a VPN to download the app. Nonetheless, TikTok plans to sue to challenge it.

The Phantom of the Opera, the longest-running show on Broadway and the musical with a title track most likely to clear out a karaoke bar, is officially closing this Sunday after a legendary 35-year run at the Majestic Theatre in New York.

Phantom opened in 1988 and won seven Tonys, including Best Musical. The powerhouse property has put on just under 14,000 shows. Another fun fact: Only 16 actors have played the Phantom on Broadway. Howard McGillin holds the record for 2,500 performances in the lead role.

Why stop now? Dropping chandeliers ain’t cheap.

• The show has grossed over $1.3 billion during its New York tenure. But it’s a big show, and producers said the pandemic bumped up operating costs by nearly 15%.
• And while it’s been raking in cash since audiences learned of its impending closure last fall, before the announcement the show was only bringing in about $1 million a week, barely enough to cover the $950,000 it costs to keep it running.

It’ll be as if we never said goodbye…productions in London and Australia are running strong, and a Mandarin version opens in China this year. Plus, composer Andrew Lloyd Webber has hinted at plans to bring a revival to Broadway in the future.—MM

Don’t be surprised if The Hangover Part IV is set in the Far East. Yesterday, the Japanese government approved plans to open the nation’s first casino.

The $13.5 billion resort complex in Osaka is expected to draw in 20 million visitors and $4 billion in revenue annually. MGM Resorts and its partners in the casino’s development see a lot of promise for the location: Japan is a wealthy nation with 126 million people—plus, it’s a quick flight away from wealthy residents of China who may be getting tired of gambling in Macau.

Japan’s tourism industry could use the help because, unlike the Japanese national baseball team, it’s been struggling lately. In 2022, the number of tourists plummeted to 4 million, compared to 32 million in 2019.

Why? Japan had one of the world’s strictest border controls during the pandemic and only reopened in October 2022 after two-and-a-half years of isolation. The casino, expected to open in 2029, is part of a larger effort to boost the economy.

But not everyone wants to roll the dice on gambling…a poll found that 45% of Osaka residents supported the casino, 38% opposed it, and 17% were undecided. As a result, getting approval for the development took years of negotiations.—CC

Stat: One thing the spread of marijuana legalization to many US states has taught us: Americans like cannabis. Last year, people across the US spent ~$30 billion on legal marijuana products—more than they shelled out for chocolate ($20 billion) and craft beer ($7.9 billion) combined, according to industry publication MJBizDaily. The publication did not provide figures for how many bags of Flamin’ Hot Cheetos Americans bought after enjoying their cannabis purchases.

Quote: “But I think the more important lesson—a lesson that Blockbuster learned too late—is simply this: If you are unwilling to disrupt yourself, there will always be someone willing to disrupt your business for you.”

If Netflix were a person, it’d finally be old enough to rent a car—it’s turning 25. And to mark that quarter-century anniversary, co-founder Marc Randolph reminisced on Twitter about the time he and Reed Hastings got “laughed out of the room” for trying to sell Netflix to the video rental chain for $50 million. With Netflix now worth more than $150 billion and Blockbuster more or less wiped off the map, Randolph appears to be laughing last.

Read: Are companies taking advantage of “excuseflation” to keep prices high? (Vox)

AI prompt writer might not be a hot new career path: The latest bots can prompt themselves.

Choose your own art adventure: There are 4.5 million new public domain images to play with.

Brush up on philosophy: Here’s one AI entrepreneur’s hardcore reading list.

Can water solve a maze? This video investigates.

Who tells your story? In just one week, our Data Storytelling sprint will teach you how to create data dashboards that tell the complete story of your team, your business, or even yourself. Reserve your spot now. Storytelling begins April 24.

CFOs, meet HR: How can CFOs increase talent retention for their organization? CFO Brew examines how one finance team partnered with their HR department to raise employee engagement.

Brew crossword: Put off doing your taxes (the deadline is Tuesday, btw) with today’s crossword puzzle. Play it here.

Open House

Welcome to Open House, the only newsletter section that’s ready to go full homesteader. We’ll give you a few facts about a listing and you try to guess the price.

Today’s home is barely in the US. It’s a sprawling 36.5-acre compound in Polebridge, Montana, about 10.5 miles from the Canadian border. The property includes multiple buildings and borders Glacier National Park, so there’s really no reason to leave—ever. Amenities include:

• 9 beds, 6 baths
• Private trout-filled lake
• 3,700-square-foot main lodge

How much to start your own cult community?

Coffee and Excel hacks? Our Excel mug is serving BOTH. Shop now.

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