I have an Etsy shop. I have a teeny tiny side gig selling plants: homegrown dahlia tubers, tulip bulbs, unusual and super-hot chili peppers grown from seed, fancy-schmancy houseplants, etc.
I may or may not be out $21 for the month, big whoop. But for a lot of people I know who sell on the platform, Etsy is the whole enchilada of their business. A lot of people stay with it, despite the fees they charge, because a centralized marketplace is a much better way to find a market than your own store, domain name, merchant account, search experience, customer services, etc...
So, uh, asking for a friend: what banks do eBay, Shopify, OfferUp, Facebook Marketplace, and Stripe use? Because there's unfortunately no reason this problem can't happen again to others...
> You don't want a situation where everyone has to ask what banks some company puts its money in.
Here’s the scary thing: even if the answer was another bank, the average person wouldn’t know if that bank was just as weak as SVB.
If people think SVB is contagious for their vendor, that’s one problem. If they start to see every bank as a potential SVB next week, that’s a whole different problem for the entire economy.
This is par for the course for Etsy, their business operations have been consistently poor. They need to take the brand hit from not conducting due diligence properly. That said it seems in Etsy case they are competent enough that the payments will be delayed not stopped.
You cannot just bail out every bank that fails, or the financial ecosystem will break down. Companies need to evaluate their partners not just trust the government to care for them.
Sorry, dude, this is flat-out wrong. Please go find out what happened to depositors over the FDIC limits at IndyMac and Silver State, just a few years ago.
I don't know where this idea that "Everyone who has ever banked at a bank that went bust has gotten 100% of their money back" came from, but I keep seeing it in SVB-related discussions, so thank you for correctly citing IndyMac. ("Everyone who has ever banked at a bank that went bust has gotten 100% of the money FDIC guarantees" is correct, but that's not what they're saying.)
Given that more than 90% of SVB accounts are larger than $250K, this is especially relevant!
I may or may not be out $21 for the month, big whoop. But for a lot of people I know who sell on the platform, Etsy is the whole enchilada of their business. A lot of people stay with it, despite the fees they charge, because a centralized marketplace is a much better way to find a market than your own store, domain name, merchant account, search experience, customer services, etc...
So, uh, asking for a friend: what banks do eBay, Shopify, OfferUp, Facebook Marketplace, and Stripe use? Because there's unfortunately no reason this problem can't happen again to others...