(Boursier.com) — The exodus of American regional banks is confirmed, following the falls of Silicon Valley Bank and Signature Bank. The Financial Times indicates that the big American banks are crumbling under the demands of new depositors. The collapse of SVB thus accelerated customer referrals to banks such as JP Morgan ChaseCiti or Bank of America. The big US banks are even “inundated with requests” from customers trying to transfer funds from smaller establishments.
According to the FT, which quotes bank executives, this movement would be the largest for deposits in more than a decade. JP Morgan, Citi and the other large groups would try to accommodate these new customers arriving en masse, eager to quickly carry out their formalities and transfers. These big banks would have taken additional steps to speed up the normal “on-boarding” process, the FT said, citing people familiar with the matter.
Thus, despite the emergency measures taken by the Fed, the FDIC and the US Treasury to reassure depositors, the latter would arrive massively at larger establishments deemed more solid, such as JP Morgan, Citi or BofA. this would particularly concern clients with assets above the $250,000 federal guarantee threshold. The transfer movement from regional banks began last week and has continued since Monday.
The big banks would therefore be inundated with calls. JP Morgan has reportedly shortened the typical wait time for opening an account and the time it takes for new corporate clients to access their funds, to ensure they are able to pay their staff on end of this week. Citi’s private bank, intended for the wealthiest people, tries to open accounts in one day, whereas the usual delay is one to two weeks… Several major banks have reportedly reassigned employees when opening accounts. accounts to meet this incredible demand. JP Morgan would still have asked its employees not to try to take advantage of the situation by actively poaching from smaller rivals, according to the FT, citing sources close to the discussions.
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