Financial Daily Dose 3.10.2020 | Top Story: US Markets Dive Again in Worst Trading Day Since 2008

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Robins Kaplan LLP

Monday on Wall Street was the equivalent of a well-forecast storm that still managed to blow meteorologists’ minds. The deadly combination of diving oil prices and yet more COVID-19 worries spelled disaster for U.S. markets, which saw a halt to trading for the first time since 1997 thanks to a precipitous fall early in the day. When the smoke cleared, the Dow experienced its biggest single-day point loss ever, and the S&P 500 had its worst day since 2008 – WSJ and NYTimes and Bloomberg and MarketWatch

As to the oil piece, we can thank an about-face from Saudi Arabia for the trouble. The Kingdom went from driving for a halt to OPEC production to promising to boost output in the span of a weekend after Russia refused to go along with OPEC’s plans – WSJ and NYTimes

The brutal economic impact of the virus has the Fed turning to its “crisis-era playbook” for strategies to calm jump traders – WSJ

And the NY Fed jumped into the fray as well, increasing the size of its short-term loan offering in an “effort to keep cash flowingly smoothly” among banks – NYTimes and MarketWatch

Early signs today suggest at least a hint of a rebound (but let’s keep those hopes in check, okay?) – NYTimes and WSJ and Bloomberg

Somehow, regular business marches on. For Twitter, that meant a truce with activist Elliott Management Corp. that will see two new members join Twitter’s board, a promise to search for “a new, third independent director,” and Jack Dorsey staying on as company CEO – WSJ and NYTimes

Speaking of tech boards, Facebook as named two new directors—Tracey Travis (Estee Lauder CFO) and Nancy Killefer (longtime McKinsey exec)—to its board, pushing its makeup to 40% female – Bloomberg and MarketWatch

Wells Fargo Board Chair Elizabeth Duke and board member James Quigley have resigned just “days ahead of a congressional hearing” this week in which Duke was set to testify and was likely to face calls for her to step down in the wake of a recent House report excoriating the bank for its failed efforts to clean up after its sales scandal – WSJ and NYTimes and Law360

The CFPB is accusing Ohio-based Fifth Third Bank of opening “unauthorized accounts in customers names as part of an aggressive sales strategy that foisted credit cards, online banking services and other products on people without their knowledge.” If that sounds familiar, well, it is. And perhaps you should consider the previous news item to see what Fifth Third may have in store in the coming years – NYTimes and WSJ and MarketWatch

NY Federal Judge Gregory Woods has refused to rubber stamp a “vague request for dismissal” that would end a 6-year court battle between Royal Park Investments and BNY Mellon over RMBS trusts – Law360

And here we thought it was gone. Turns out, some timely corporate generosity from the fine folks at Great Clips was all it took to resurrect the much-needed All Hockey Hair Team for 2020. Enjoy the flow, folks – GameOnMN

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