Top News in Finance for April 4, 2023

Banking Crisis Continues, Says Dimon

JPMorgan Chase CEO Jamie Dimon cautions that the ongoing banking crisis triggered by Silicon Valley Bank’s collapse is not yet over. In his annual shareholder letter, Dimon notes that there will be repercussions for years to come, although the situation isn’t as severe as the 2008 financial meltdown.

Google Cuts Costs

Google is focusing on cost reduction, having eliminated 12,000 jobs in January and now implementing shared desks for cloud division employees. Other cutbacks include reducing equipment replacement pace, limiting office amenities, and providing fewer services for staff.

Virgin Orbit Files Bankruptcy

Virgin Orbit has filed for Chapter 11 bankruptcy protection after failing to secure funding to stay operational. The company plans to seek a buyer during the bankruptcy process, hoping that this approach will lead to a value-maximizing sale.

FTC Orders Illumina to Divest Grail

The Federal Trade Commission (FTC) has demanded that DNA sequencing company Illumina divest cancer test developer Grail, citing that the $7.1 billion acquisition would harm competition and hinder innovation. Illumina plans to appeal the FTC’s decision and is also addressing a similar European Union ruling.

Trump to Surrender to NY Authorities

Former President Donald Trump will turn himself in to New York authorities on Tuesday, facing over 30 counts in a case brought by Manhattan District Attorney Alvin Bragg. Stemming from a hush-money payment to a porn star before the 2016 election, Trump’s surrender marks the first time a former US president has been charged with crimes.