A private-sector bank rescue mission
Eleven U.S. banks came together yesterday to inject $30 billion into First Republic Bank, a smaller peer on the brink of collapse after the implosion of Silicon Valley Bank last week. The arrangement, in which each will deposit at least $1 billion into First Republic, is meant as a show of support and a signal that the San Francisco lender’s woes do not reflect deeper trouble.
The arrangement was without precedent in decades, and an indication of how dire the banking sector’s predicament had become within a week. With their echoes of the 2008 financial crisis, the collapses of Silicon Valley Bank on Friday and Signature Bank on Sunday set off a panic that appears unlikely to subside immediately.
Shares of First Republic, which had lost three-quarters of their value in recent days, rallied on the announcement. But numerous other bank stocks continued to be pummeled. The banking sector has also been under pressure as a result of trouble at Credit Suisse, which was fighting for its life before Switzerland’s central bank stepped in to provide a backstop.
Details: Four of the country’s biggest banks — JPMorgan Chase, Bank of America, Citigroup and Wells Fargo — agreed to contribute $5 billion each. Goldman Sachs and Morgan Stanley will contribute $2.5 billion each.
Europe: The European Central Bank raised interest rates by half a percentage point to 3 percent, the highest since October 2008, sticking to its inflation-fighting plan.
Backlash as Macron rams through retirement change
Emmanuel Macron, the French president, opted to push through legislation to raise the retirement age to 64 from 62 without a full parliamentary vote, a decision certain to inflame an already tense confrontation over the measure. Opponents across the political spectrum burst into rounds of the “Marseillaise” and pounded on their desks in response.
For some, Macron’s decision smacks of the kind of contempt and aloofness of which he has sometimes been accused. During his second term, he has tried hard to project a milder image — more ready to listen and less inclined to rule alone. But the confrontation over his pension plan has revealed a more isolated president, with fewer allies.
The decision to avoid a National Assembly vote, which will be regarded by Macron’s political opponents as antidemocratic even though it is legal, came after two months of major demonstrations and intermittent strikes. Millions of French people have said they see the changes as an assault on their way of life.
Background: The Senate, or upper house, approved the bill early Thursday. But disarray in the lower house occurred because Macron’s Renaissance party does not hold a parliamentary majority. Even the center-right Republicans, who once pushed for raising the retirement age to 65, were hesitant to support Macron as nationwide protests against the measure grew.
Poland plans to arm Ukraine with warplanes
Andrzej Duda, the president of Poland, said that his country would transfer four Soviet-designed MiG fighters to Ukraine “literally in the next few days,” potentially pushing Western military aid to the embattled country over a significant threshold. The warplanes would be the first sent to Ukraine by a NATO country since Russia invaded last year.
Poland first pledged such fighters a year ago but has so far sent none. Officials had previously indicated that they would send warplanes to Ukraine only alongside other countries. It was not immediately clear which allies were ready to join or whether Poland was going it alone. And there was skepticism over whether Warsaw could move as quickly as it hoped.
Some of Ukraine’s allies have appeared far more reluctant when it comes to warplanes, and the U.S. has said that sending them is not currently on the table. The debate over fighter jets came as Russian and Ukrainian troops in the eastern part of the country remained enmeshed in battle around Bakhmut, where both sides have sustained heavy losses.
In other news from the war:
How do you celebrate spring?
Spring starts on Monday, ushering in warmer weather and an array of festivals celebrating the new season across Europe. Some are hyperlocal affairs that are deeply rooted in tradition, and others are sprawling events that welcome people from all over the world. They run the gamut from mainstream to decidedly quirky.
We’re asking readers about local spring festivals and traditions where they live. How does your community mark the arrival of spring? And what does participating in this event mean to you?
To share your story, fill out this form. We may use your response in an upcoming newsletter.
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From The Times: The N.C.A.A. men’s basketball tournament began with major upsets, as No. 15 Princeton toppled Arizona, a No. 2 seed, while the No. 13 seed Furman knocked down No. 4 Virginia.
ARTS AND IDEAS
A sober St. Patrick’s Day
Especially in the U.S., St. Patrick’s Day has often been associated with drinking. This year, more demand for sober revelry has led some bars and restaurants to offer teetotaling alternatives to the festivities, as well as a greater focus on Irish food and music.
More alcohol-free products, including Guinness 0, an alcohol-free version of the stout, have helped bar owners in New York City get creative. (Samples of the Guinness drink will be distributed on the trading floor of the New York Stock Exchange this afternoon after the ringing of the closing bell.)
Others say the holiday should always have been about food and culture — rather than simply getting drunk. “In Ireland, St. Patrick’s Day is less centered on a drinking occasion and more of a celebration for the whole family,” said Moira Breslin, the founder of New York City’s Irish Whiskey Festival.
