Seems the collapse of Silicon Valley Bank (SVB) could cause a domino effect in the US…
Etsy sellers woke up last weekend to a transaction freeze, unable to withdraw money from the platform.
Etsy admitted it “relied on SVB for some accounts,” but promised there will only be “a delay” with deposits.
Of course, users are still concerned, rightfully so. Many rely on the platform to “pay the bills.”
Etsy isn’t the only company affected by the SVB closure. Crypto company Circle, kids retailer Camp, and Compass Coffee are all feeling the door, too.
Meanwhile, startup accelerator Y Combinator is worried that hundreds of thousands of startup jobs are now at risk.
… Including marketing roles.
But don’t panic
The Department of US Treasury, Federal Reserve, and FDIC released a joint statement saying depositors will have access to all their money starting today.
Eariler this weekend US Treasury Secretary Janet Yellen assured people that the US banking system is more resilient than it was in 2008, given the controls put in place after the 2008 crash, and the tests run at the start of the pandemic.
And for perspective, there have been 562 bank failures in the US between 2001 and 2023.
There have been 562 bank failures in the US since 2001. The FDIC has a browsable database of them. In practically every case, depositors were made whole by the acquiring bank in deals brokered by the FDIC.
— Dare Obasanjo (@Carnage4Life) March 12, 2023
So that’s some comfort, at least.
Why we care
Experts are calling SVB’s downfall the “largest bank failure since 2008,” and it could have a significant impact. We’re already seeing the ripples.
But ripples aren’t waves. We suggest monitoring the industry as these events unfold, since marketing will likely be affected, too.