Good morning. In a lawsuit filed Monday in U.S. District Court in northern California, First Citizens is suing HSBC for more than $1 billion, alleging an illegal “scheme to plunder” one of SVB’s core businesses that it says rightly belonged to First Citizens.

• What happened: At around 9 p.m. on Easter Sunday, dozens of top bankers from the recently failed Silicon Valley Bank pressed send on an email to their new employer, First Citizens BancShares, announcing their resignation, according to a new lawsuit. Without delay, the bankers were all hired by HSBC Holdings, the lawsuit says.
   
• Broader HSBC plan? First Citizens says the mass resignation was part of a broad plan by HSBC and a former top SVB banker to steal a hugely profitable business that First Citizens had acquired through its late-March purchase of SVB. Much of the business came from SVB’s life-sciences and technology-banking team, the lawsuit alleges.
   
• Original deal: First Citizens said it would buy most of what was left of Silicon Valley Bank in late March. It acquired billions in SVB’s deposits and loans, and hoped to leverage SVB’s established relationships with businesses in technology and other areas to expand its footprint.

An HSBC spokeswoman declined to comment Tuesday.

• Caymans Regulator Exploring Options After FDIC Seized SVB Deposits

Court questions criteria for Carson Block’s $14 million SEC whistleblower award.

An appeals court upheld the U.S. Securities and Exchange Commission’s decision to deny a whistleblower award in a case involving short seller Carson Block, while at the same time broadly questioning how the agency decides who receives awards from its cash-for-tips program.

The opinion from the U.S. Court of Appeals for the Third Circuit, which was unsealed Friday, didn’t identify the two claimants in the case, in line with whistleblower-protection rules. But people familiar with the matter said that the claimant who received nothing—Jamie Doe, also referred to as the Claimant 2 in the opinion from the Third Circuit and the SEC award order—is Kevin Barnes, and Claimant 1, who eventually received a $14 million award, is Block.

Facebook parent Meta agrees to sell Giphy for $53 million on regulator’s order.

Shutterstock on Tuesday said it agreed to buy Giphy from Facebook parent Meta Platforms for $53 million in net cash, ending a yearslong legal battle that forced the sale of the social-media animated-images company.

Why sell Giphy? Meta last year said it would sell Giphy after the U.K.’s top competition authority affirmed an earlier order to undo its 2020 acquisition of the company for $315 million.

• Companies including PPG Industries and LyondellBasell Industries are providing details about their supply-chain-finance programs for the first time under a U.S. rule that recently went into effect, but questions remain about risks associated with the cash-management tools.
   
• Vodafone Group and Nestlé have set up panels of experts to double check environmental claims before they appear on products and marketing, a move by the multinationals to avoid allegations of so-called greenwashing.

Biden tries to close debt-ceiling deal Democrats sought to avoid.

President Biden and Democratic leaders in Congress approached this year’s debt-ceiling drama with a consistent mantra: They would absolutely never, ever, under any circumstances, negotiate over raising the country’s borrowing level.

But now they are very much negotiating on the debt limit, just about a week before the June 1 date when the Treasury Department estimates the U.S. could run out of measures to avoid default.

• How a Debt-Ceiling Crisis Could Play Out on Wall Street
• Spending Fight Is Main Event in Debt-Ceiling Talks
• For Banks, Debt-Ceiling Drama Doesn’t End With a Deal

• Russian forces are still fighting for control of parts of the border region of Belgorod, the region’s governor said Tuesday, warning residents of a handful of border villages not to return to their houses the day after authorities there blamed Ukraine for the war’s largest incursion into Russian territory.
   
• While the rumblings of the volcano Popocatépetl are quotidian for residents of central Mexico, a period of increased activity has prompted Mexican officials to raise the alert level regarding a possible eruption.

• Apple said it is extending its chip-supply agreement with Broadcom in a multiyear, multibillion-dollar deal, at a time when the iPhone maker has been trying to bring more such work in-house.
   
• U.S. economic activity rose in May to the highest pace in 13 months, showing persistent resilience to rising interest rates and high inflation ahead of a debt-ceiling deadline that threatens to bring the expansion to a halt.
   
• Nations of NATO’s eastern flank are rearming and preparing for war. But Germany and most of NATO’s other biggest members aren’t.
   
• Elon Musk said he would interview presumptive Republican presidential candidate and Florida Gov. Ron DeSantis on Wednesday on Twitter, promising “a major announcement.”
   
• The Biden administration took another step Tuesday toward regulating new artificial intelligence tools such as ChatGPT, asking for public input as it seeks to develop a national AI strategy to guard against misinformation and other potential downsides of the technology.
   
• A Russian court extended until at least Aug. 30 the pretrial detention of Evan Gershkovich, the Wall Street Journal reporter deemed by the U.S. to be wrongfully held, after investigators requested more time before his trial.

Follow us on Twitter at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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