FDIC bank accounts are only insured up to $200,000. The only hope would be that etsy has deposited money in various other banks or that the federal government makes a special exception to guarantee all the deposits in excess of $200,000 limit. Many start ups including etsy were only allowed to bank with Silicon Valley Bank which was for the purpose of lending start ups money with the condition they could only get the start up money IF they only banked with Silicon Valley Bank and not other banks. SO the only. way. Etsy would get more than $200,000 which is the maximum insurance amount per account, if if the government stepped in and made a special exception. This is not guaranteed because the public may view it as a bail out.As Etsy knew the bank account was ONLY insured foor up to 200K and that they were prohibited for having money in other banking accounts, as this was the legally binding stipulations for etsy getting the start up money. SO in a nut shell- Etsy could go under because of this, or a bail out from the government can happen.
