The collapse of the Silicon Valley Bank and Signature Bank has caused a decrease in the value of shares in banks around the world.
If the US government had not protected deposits over $250,000, workers would not have been paid and start-ups banking with Silicon Valley Bank would be in danger.
The US President, Joe Biden, sought to assuage fears by saying that people's money is safe.
However, the collapse of the banks will have wider ramifications for the US and beyond.
The collapse of Silicon Valley Bank and Signature Bank has caused ripple effects around the world.
The US government's rescue of uninsured depositors in these banks was essential as it protected people from the collapse of the banks.
However, this move was also frustrating and could have been avoided if companies had not exceeded the maximum deposit amount of $250,000 insured by the Federal Deposit Insurance Corp.
If the government had not provided blanket protection to deposits, start-ups banking with Silicon Valley Bank would have been imperiled.
Karen Petrou, managing partner of Federal Financial Analytics, said that it "could have destroyed early-stage biomedical research in this country for a decade", which highlights the gravity and impact of these events.
While the US President, Joe Biden, tried to alleviate fears by assuring the public that their money is safe, there are wider implications that could affect the US and beyond.