Monday morning news: March 13, 2023

Wall Street bracing for Monday morning after bank collapse » Wall Street is opening to uncertainty today … as investors brace themselves for the fallout … from the second-biggest bank collapse in US history.

Democratic Senator Mark Warner:

WARNER - This bank did fund startup companies all over the country. I know it's called Silicon Valley Bank, but the startups literally are all across the country, and they've got to pay their bills this week.

Last week, the bank said it needed to raise $2.25 billion to balance its books. That sparked a bank run, leading the government to seize the bank’s assets on Friday.

Republican Senator Kevin Cramer says the bank failure could shake investors’ confidence.

CRAMER - My sense is it is a fairly localized issue. The problem is that we live in a very emotional time where markets are emotional. The reference to to social media has been an accelerator if you will, of some of that emotion. I think it can be problematic.

Treasury Secretary Janet Yellen says the government will not bail out the bank… which could leave some account holders in the lurch. The F-D-I-C insures up most customer deposits of up to $250,000.

China and TikTok » The chairman of the House Intelligence Committee says he remains extremely concerned about China’s access to American data … through the Chinese-owned social media app TikTok. Congressman Mike Turner told ABC’s This Week:

TURNER: We worked really hard to get them out of our telecommunications systems by getting rid of Huawei systems in our telecommunications. Then we’re handing over our phone systems by people downloading the TikTok app.

The FBI and US intelligence agencies continue to warn that the popular video sharing app could be used in Chinese spying and influence operations within the United States. House leaders plan further hearings to examine how the government should respond to the threat.

SD boat accident » At least eight people are dead and more are missing after two smuggling boats wrecked off a San Diego beach.

Authorities received a 9-1-1 call Saturday night from a woman who was on one of the boats.

San Diego Lifeguard Chief James Gartland told KGTV.

GARTLAND - When lifeguards arrived on scene, we arrived in rescue mode. We did the best we could to recover people from the water, try and find survivors.

Rescue teams pulled the eight bodies from the water, but heavy fog hindered the search for the rest of those missing.

Coast Guard Commander for San Diego Capt. James Spitler He told KGTV …

SPITLER - This is not necessarily people trying to find a better life. This is part of a transnational criminal organization effort to smuggle people into the United States. These people are often labor trafficked, and sex trafficked when they arrive.

He says human trafficking in the area has increased by more than 700 percent since 2017.

CA flooding » Another atmospheric river is scheduled to hit California today, bringing more flooding and power outages to the waterlogged state.

Tulare County Sheriff's spokeswoman Ashley Ritchie

RITCHIE - An evacuation for the Cutler area. Now due to a levee break…

Near Monterey Bay, crews were trying to repair a broken levee on the Pajaro River before more rain arrives. Monterey County Spokesman Nicholas Pasculli:

PASCULLI - Quite simply the magnitude of the flows. The levee did experience boils and overtopping locations as we experienced in January both on this Santa Cruz side and the Monterey side.

Thousands were forced to evacuate the area.

California Gov. Gavin Newsom has declared a state of emergency in 34 counties.

Ukraine » The Russian advance in the city of Bakhmut in eastern Ukraine … seems to have stalled as of this weekend. WORLD’s Josh Schumacher.

JOSH SCHUMACHER, REPORTER: The head of the Russian mercenary Wagner Group publicly declared last week that his troops had seized control of much of Eastern Bakhmut.

But the Institute for the Study of War reports that while Russian forces have remained engaged in heavy fighting … the Kremlin has not announced any further advances.

Ukrainian President Volodymyr Zelenskyy last week shot down rumors of a strategic retreat … and said his forces would not give up on Bakhmut.

For WORLD, I’m Josh Schumacher.

And I'm Kent Covington. For more news, features, and analysis, visit us at wng.org.

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