#2023-7, March 17, 2023

Silicon Valley Bank Failure Triggers Strong Government and Association Response

The rapid collapse of Silicon Valley Bank (SVB) and the shock waves that has sent through the Boston area tech sector is putting Governor Maura Healey’s (D – Cambridge) new administration’s connections to federal policymakers and the business community to the test and adding another item to a full to-do list.

Last week’s failure of the California-based bank was felt acutely in Massachusetts because of its importance to the region’s technology, innovation and life sciences sectors, and because SVB had what Secretary of Economic Development Yvonne Hao called “a broad client base here,” including nonprofit organizations and customers of the former Boston Private Bank and Trust Company.  SVB had locations in Boston, Wellesley, Newton and Beverly.

Governor Healey said her team was in touch with the White House, federal regulators, the state’s Congressional delegation, and leaders in the state’s business and banking worlds about the bank failure.  Secretary Hao, who has experience in the innovation, tech and venture capital worlds, said the administration is “working across secretariats to develop creative solutions to help businesses and individuals meet their needs and fill gaps where necessary.”

Along those same lines, the Association has also been busy working the phones and holding Zoom calls this week – including staying in regular contact with our members, the Division of Banks, House & Senate Leadership, Governor Healey officials (including Secretary Hao) and fielding numerous press inquiries. All efforts were made to reiterate the strength of our member banking institutions and reassure the public that their deposits are safe here in Massachusetts.

Members with questions, or who have heard concerns from their customers, are asked to contact the Association.

Governor Healey Lifting COVID Health Emergency, Vaccine Mandate

Earlier this week, the Healey administration announced it will end the public health emergency status in Massachusetts -- which in 2021 effectively took the place of an earlier COVID-19 state of emergency -- on May 11, the same day a federal public health emergency ends.  That move will end six public health emergency orders, one of which requires Bay Staters to wear masks in some health care and congregate care settings.  The other five public health orders now due to expire deal with health care workplaces and staffing, some of which Healey plans to tackle via separate legislation.

On the same day the state public health emergency ends, Healey will also rescind a Baker executive order that required executive branch workers to receive a primary vaccination series against COVID-19 or secure a medical or religious exemption, and her administration signaled it may work to bring back some employees who left because of the mandate.  However, COVID-19 vaccine mandates will remain in place for some state employees in “certain roles and settings” due to regulations from the Centers for Medicare and Medicaid Services and the Executive Office of Health and Human Services, Healey’s office said.

During her announcement, Governor Healey also praised her predecessor, Governor Charlie Baker (R – Swampscott), saying he and his administration “saved countless lives by putting these important measures in place in a time of immense crisis.” As previously reported, Baker declared a state of emergency in Massachusetts due to COVID-19 on March 10, 2020.  In May 2021, he declared a “modified” public health emergency that remained in place after the formal state of emergency’s end on June 15, 2021, giving state public health officials greater flexibility to roll out testing, vaccination and response policies.

Jobs In Massachusetts Back to Pre-Pandemic Levels

Total employment in Massachusetts rebounded to pre-pandemic levels in January, 34 months after the COVID-19 state of emergency began, as employers added a robust 19,600 jobs.

The January gains brought the statewide employment to 3,743,500, labor officials announced last week.  That’s just 200 positions short of the total recorded in February 2020, the last month before a cascade of enormous job losses followed by a jobs recovery.

The industry with the biggest growth was education and health services, which employed 5,000 more people month-over-month.  Other sectors with gains include trade, transportation, and utilities (+3,200 jobs); leisure and hospitality (+3,000 jobs); and professional, scientific and business services (+2,300 jobs).  None of the industry categories tracked reported a net decrease in jobs in January; financial activities experienced no change.

Officials on Friday also revised December’s labor data to show an increase of 3,800 jobs, down from the original estimate of 6,300.  The revision bumped up the statewide unemployment rate in December from 3.3 percent to 3.7 percent, and officials said that figure fell to 3.6 percent in January.  Massachusetts had a slightly higher unemployment rate in January than the 3.4 percent reported for the country as a whole that month.

MassSaves to Host Financial Health & Wellness Summit on April 21

The MassSaves Financial Health and Wellness Summit is an annual event for teachers, financial educators, community practitioners and supporters from all backgrounds to network, share, and learn to improve financial education.  This year’s summit will be held on April 21 from 10:00AM – 6:00PM at North Shore Community College’s Lynn Campus.

MassSaves is a broad network of public and private stakeholders including financial educators, providers, community organizations and advocates.  Participants work with youth and adults with a vision to make Massachusetts a national model for financial confidence and empowerment, creating a stronger financial future for the entire Commonwealth.

To find out more about the event and to register, click here.