First Republic Bank might be breathing its last breaths. Regulators are gearing up to take over the beleaguered regional lender, just like they did the two banks that failed last month, Reuters reported yesterday. And sources told the WSJ other lenders are looking to buy the bank after the government seizure in a deal that could be completed this weekend.

Officials spent the past few days huddling with financial institutions to devise an action plan to prevent First Republic from becoming the latest bank meltdown headline. But there appear to be no private banks willing to help it raise more cash.

How’d we get here?

The bank panic that led to the collapse of Silicon Valley Bank and Signature Bank left First Republic’s depositors worried about whether it could stay afloat. Like many regional banks, it invested depositor cash in assets that were devalued over the past year by rising interest rates.

First Republic got hit extra hard by the crisis because it had successfully pursued wealthy clients in order to grow. Its once enviable client list became a liability since two-thirds of accounts at the bank had balances above $250k—so most depositors knew they wouldn’t be made whole by the Federal Deposit Insurance Corporation if First Republic ran into trouble.

• Clients pulled more than $100 billion from their accounts in the first quarter of 2023, leaving First Republic with a 40% reduction in deposits.

Things calmed down after heavy hitters, including JPMorgan and Bank of America, deposited $30 billion in the bank last month. Although this temporarily reassured customers, things started to look dire for First Republic again after it reported dismal quarterly results this week. Its stock has plummeted more than ~75% since Monday, putting it at a 97% loss compared to the start of the year.

Looking ahead…if the bank fails, regulators will have some busy days ahead of them deciding whether to make First Republic depositors whole and assuring the public that the banking sector isn’t in trouble.—SK

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The Fed says it’s time for new bank rules. Just in time for a new looming bank failure, the Federal Reserve issued a 102-page report dissecting the corpse of Silicon Valley Bank. The Fed pointed the finger at both its own inadequate supervision and the bank’s management. And in an accompanying letter, Michael Barr, the Fed’s vice chair for supervision, called for stricter rules to be applied to more financial institutions and for more tools to be given to regulators to bring firms with poor capital planning and risk management into line.

North Carolina plays the reverse card on gerrymandering. The newly installed Republican majority on North Carolina’s Supreme Court looked at the court’s recent precedents on voting rights and decided they’d rather go in a different direction. In two separate decisions yesterday, the court tossed out an earlier ruling that rejected Republican-drawn election maps and reinstated a voter ID law that the prior court had nixed as racially biased. A third ruling denied voting rights to people with some felony convictions.

Can Jack Dorsey make Twitter 2.0? So far, none of the social media platforms hyped as the big thing for those looking to replace Elon Musk’s Twitter has gained real traction, but the latest one, Bluesky, might have a bit of an edge—and not just because Chrissy Teigen has already joined. It has funding from Dorsey, Twitter’s founder. Bluesky has basically the same functionality as Twitter, but the twist is that the new app intends to be decentralized. If that intrigues you, you’ll have to wait: The app is invitation only for now.

In the wake of the company’s bankruptcy filing, Bed Bath & Beyond is closing all 360 of its locations (and all of its Buybuy Baby stores). But those giant, fluorescently lit buildings will be filled soon enough as retail landlords are swimming in potential tenants.

There’s a big-box space shortage: Vacancy rates for existing retail space hit 4.9% at the end of last year, which is the lowest rate since 2005, when commercial real estate firm CBRE started tracking it. This and the meager new construction since 2008 means there’s simply not enough space for companies like HomeGoods to chaotically display ceramic dog statues and gaudy throw pillows.

With large retail spaces in short supply, discount outlets like TJ Maxx, Nordstrom Rack, Five Below, and even budget gym Planet Fitness are plotting to snatch up old BB&B locations, some even before the last toaster is sold.

Bottom line: The BB&B closures are a welcome influx of space. According to Coresight,  retailers opened more stores than they closed in 2022 for the first time since 2016.—MM

To mow or not to mow? That is the question homeowners are debating as more cities and towns embrace No Mow May, a movement started in 2019 to revitalize backyard wildlife by refraining from lawn care for an entire month.

And it works, sort of.

• In past years, participants have watched their lawns transform from an “ecological dead zone”—as one professor calls the average American yard—into a tall-grassed ecosystem rife with bumblebees, songbirds, chipmunks, and other forest friends...or foes. Last year, some Minnesotans called the police on snakes they spotted.
• But some environmentalists say No Mow May isn’t the right way to bring biodiversity back to residential areas because it “teases” insects and other pollinators. Their newfound habitat goes away when homeowners bust out the lawnmowers on June 1.
  

Instead, experts encourage supporting local wildlife by seeding native plants and other pollinator-attracting greenery. The Guelph Turfgrass Institute suggests channeling the benefits of No Mow May throughout the other 11 months by sectioning off a part of the yard as a permanent “wildflower zone.”—ML

Stat: What does it take to move a 331-pound stone from Scotland to London? A coronation. The Stone of Scone (also known as the Stone of Destiny) has left Edinburgh Castle to make its way to the big city for King Charles III’s little party next weekend. The stone is no stranger to such royal affairs: It was present at the anointing of Scottish kings for centuries before it got nabbed by England’s Edward I in 1296. In 1996, Queen Elizabeth II agreed to send it back up north, but only if it RSVP’d yes to future coronations.

Quote: “This is a tale of two women, two teenage dreams and one name.”

Pop star Katy Perry lost a trademark fight in Australia this week over her own name. Turns out the famous California girl shares a name with Aussie fashion designer Katie Taylor (née Perry), who registered a trademark for her brand Katie Perry there in 2008. And yesterday, a judge who couldn’t help referencing the singer’s best tune in her ruling refused to void the trademark and found that the less-famous Perry’s rights were violated by merch sold for the other Perry’s 2014 Australian concert tour.

Read: What happens when Dave Chappelle buys up your town? (Bloomberg)

AI, but make it Shakespeare: Here’s what it looks like if you train a language model on just one author.

Panda diplomacy: We can only guess what’s being discussed at this very important summit.

Can of worms: Scientists have crunched the numbers to explain how the creepy crawlers can untangle themselves from one another so quickly.

If you’re nasty: Ms. Jackson gets an apology (that’s also a flex).

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Brew crossword: This is honestly just such a fun crossword puzzle from top to bottom. Play it here.

Open House

Welcome to Open House, the only newsletter section that wants the lingering scent of hot dogs to be present all summer. We’ll give you a few facts about a listing and you try to guess the price.

Today’s home is a mere 300 feet from the Wrigley Field marquee—which is shorter than the 360 feet around the field’s bases, Block Club Chicago points out. The home was built in 1890, 17 years before the Cubs won their first World Series title. Amenities include:

• 6 beds, 4 baths
• Wood paneling…everywhere
• Five parking spots

How much to be part of the game day action from bed?

Has needing to ask for more time on a project kept you up at night? What about getting or giving a performance review? Put yourself at ease with our Difficult Conversations course, returning on May 15. Reserve your spot today.

Don’t be intimidated to speak your mind. Money Scoop’s free Salary Negotiation Guide provides insight on how to get the salary you deserve. Check it out.

Hear Lo Bosworth, founder of Love Wellness and former star of Laguna Beach, explain how her company has expanded its audience and mission by addressing stigmas through brand-building and marketing efforts at The Brief.