Both the tech and entertainment industries have flocked to specialist banks that understand their particular requirements. So when Silicon Valley Bank (and others) went down, Hollywood naturally shuddered.
The actual damage amounted to a weekend of worry, with regulators stepping in to make sure bills got paid, paychecks issued and cash tapped. But the bank failures set off a swirl of market uncertainty that could pose longer-term challenges for the entertainment industry — including the possibility of a global recession that would test corporate plans built on the premise of a continued bounceback from the pandemic.
From a banker’s perspective, Hollywood and Silicon Valley don’t look that different.