Trouble in Etsy-land? Did anyone else get this email?

OMG. That’s not good.

Hope they straighten things out ASAP. It’s stuff like this that can really put the markets into a tail spin and of course sellers should get their money when they are supposed to.

Been following the news on this but had no idea that a sizeable marketplace was involved.


I am on vacation mode on Etsy until they get this resolved. Super uncool and downright scary…


Found this. You can bet Etsy had more than $250K with them. It might be awhile before this is straightened out for Etsy sellers.

The FDIC created a new bank called the Deposit Insurance National Bank of Santa Clara (DINB), which transferred all insured deposits and plans to reopen the SVB branches on Monday, March 13, 2023.
emphasized text
Unfortunately, the FDIC is still trying to sort out how much of the estimated $175.4 billion in total deposits is uninsured.

This means that any individual or corporate entity with deposits exceeding $250,000 will not have access to their uninsured portion unless the FDIC can find a buyer, investor or dissolve the bank.

Which is why I don’t have more than 250k in a single account - that’s fucking nuts


How do you handle that with Amazon? Moving capital around to different accounts post-deposit if that deposit brings you over $250K as a total?

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Moving capital post deposit. Yes.

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TY. My partner has been talking about this lately (before this all happened).

Suppose it’s time for me to listen to him because we’ve got a problem if there’s a problem.

I’d be happy to take my share and fix the problem though rather than moving it around. lol

So far one regional bank - we have some 20+ regional banks - how far the cookie crumbles is the question. Has Lehman vibes and I’m old enough to remember that.

It’s also why I don’t use a regional bank.

My understanding is once the government steps in people do eventually get their money back after all the banks assets are liquidated? Do you know what the process is?

I agree with you on this but it’s a process that can take a very long time. I don’t know the exact process.

We figure Chase is safe, which is where all our $ is but you never know.

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I was aware of the SVB situation but not that etsy was involved. Yikes, I’m so sorry! I hope this is the first thing the investigators can resolve.

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Hopefully it gets resolved quickly. I have been on Etsy since 2004 but fortuitously have been focusing mostly on Amazon lately so it’s not a complete disaster for me. It sucks for those with more eggs in the Etsy basket.

A bank for startup and tech that had its VCs go on a run… can’t say I’m surprised.
Too many overleveraged again with crypto tanked and interest rates where they should have been 5 years ago. The rates were at/near 0% for way too long and too often an excuse to not raise them even just a little.

Even with that though:

Enough return isn’t enough return for those types.

It is sad that a company could have 4% profits, but because the forecast was for 5%, they’ve somehow “failed”.


If your under the FDIC cap of $250k, the FDIC works it’s butt off* to make sure the “bank” is open next business day. They normally come in on a Friday evening at shut down (or Sat) and are open Monday morning as if nothing happened.

This situation with how fast it was going down hill, they stepped in Friday AM, and are saying by Monday AM all who are covered should have access.

Those that don’t have coverage, you would be handed a note and would be in line like creditors at a bankruptcy case


  • The FDIC is one of those Govt things that does actually tend to work for the people.

Back in the day before the internet, the FDIC would come in Friday at 4.30pm, and re-open the bank Monday at 8am and most people had no idea what happened, it was seamless.

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Works well for normal people. For a business, a lot of cash gets flushed through the bank with vendors, payroll and all.

This Bank, as I understand it reported by one or two people, no one in the media appears to care… Is somewhere around the 14 largest bank in the country. They have at least one branch in Miami, and acquired a small bank in Boston. Those branches also locked the doors midday Friday.

I spent a few hours listening to a talk show on Friday with an “expert” out of New York on this. It is a conservative show, I am a fiscal conservative, so take that into account.

He had called in on Thursday, a regular financial professional contributor. He indicated that the failure was imminent.

Like most all banks they do not have funds on hand if everyone wants their money at the same time. Thus the danger of a “Run on the Bank.”

He expected that they were trying to get to the end of the day Friday, to have a cooling off over the weekend. They sadly (poorly) locked the doors in the middle of the day. This causes panic.

I only heard a small clip, but reportedly the senior management sold stock a few weeks ago. This at the same time as the bank was issuing new stock to build it’s capital (cash reserves) to avoid this type of thing.

The New York analyst, indicated this is a problem and can grow quickly infecting other institutions. He indicated even large banks in the top 5 are not immune, he named them, I will not here.

A “Run on the Bank” has people showing up door to withdraw funds. Reasonable or not. For example, yes accounts with under $250K are insured, and if you have $500K split between two banks you are insured. So not reasonable to worry.

Yet painful, if you don’t have access to your funds, this is the reason we use two Banks for our business. In the crash early/mid 2000 one of our banks accounts were sold, across state boarders. We went to get some cash, “you don’t have an account here sir.” We were given the new Banks name and told to go see them.

The analyst indicated that this Bank had not gone through a stress test, to see if it could survive this situation. I am not sure if they had in the past, or if this was about currently doing this. Regardless, the fault is on the Treasury Department and the Security and Exchange Commission to be sure this is done.

The Dodd-Frank Act of 2010 was to fix this problem. Clearly it did not work, something needs to be done. Or shall we continue to ignore history?

So we can all see the cascading effect even in this small nugget. Yes, I know the OP is smart and uses multichannel marketing to diversify. Yet think about this in the big picture.

I just picked up a few thousand dollars in supplies Friday from one of my vendors. Could I have done that if our bank had closed?

Other Banks are concerned, I am sure special meetings were plentiful Friday evening planning to calm depositors and customers. I say this with first hand knowlage.

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Lots of discussion about this on Reddit last night. Consensus is they likely just used SVB as a facilitator to issue deposit transactions and they just need to switch to another bank. I wouldn’t go on vacation because of it - most feel it’ll be resolved by the next cycle (Monday).


This is slightly off topic as it doesn’t relate to Etsy, but Roku is one of the companies that had uninsured funds at SVB. Around $487 million, or 26%, of Roku’s cash reserves are stuck at Silicon Valley Bank, according to a Roku SEC filing on Friday.
“The company’s deposits with SVB are largely uninsured,” Roku said. “At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB.”

Shares fell after hours on the news, but apparently the company believes its remaining reserves will be enough to meet its financial obligations for at least the next 12 months.

It will be interesting to see how/if the affected companies recover from this bank failure.


I read that also this morning. I don’t think Roku will fail based upon this alone.


I agree but I imagine many of the VCs won’t be in the same position.

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I can’t imagine Etsy being too hurt by this. As long as people are still buying they still have an influx of cash coming in. They may have to “use Peter to pay Paul” and shuffle things around but I doubt it will effect them too much.

I see a lot of people all over Reddit saying they are putting their shop on vacation mode because they don’t think they will get paid. The last thing Etsy wants to do is go out of business.

I’m keeping my shop open and hopefully get some extra sales if everyone else goes into vacation mode. A risk I’m willing to take that they don’t pay me, but I know my profits and my business can afford take the hit if I don’t get paid from Etsy.

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