$260bn in Deposits Now Exit Top Banks This Year
$260bn in deposits have now exited top US banks this year according to the latest data from the S&P Global.
However, S&P analysts say that the entire US banking industry has lost a total of $872 billion in a year that “witnessed the collapse of three large American banks,” reports DH.
Out of the $872 billion in deposits that left the industry year over year, S&P says approximately 30%, representing $260 billion, exited top us banks this year including JPMorgan, Bank of America, Wells Fargo and Citi.
When looking at the 15 largest US banks by deposits, Charles Schwab witnessed the largest level of outflows, reports DailyHodl.
“Among the top 15 deposit holders, Charles Schwab Corp. reported the largest year-over-year decrease in deposits of 31.1% to $304.79 billion, attributable mostly to outflows from brokerage accounts.”
This represents a 4% decline year over year in deposit losses for all US banks.
The report by S&P also shows just how many bank branches have been slashed recently.
As of June of this year, the number of physical branches in America were 77,796, compared to 79,172 the year prior and 96,339 in 2013.
DH says that high profile investor and venture capitalist Kevin O’Leary recently predicted a mass consolidation of US regional banks driven by the acceleration in deposit flight and a nervousness to trust the system in general.
“We have 4,100 regional banks in America. Probably in the next three years, it will be down to 2,000. They’re going to consolidate…
People are very nervous about putting their money in the bank because if another one fails and you have your cash in there, right now you’re only guaranteed for $250,000,” said O’Leary.
Also Read: Wells Fargo Is Now Scheduled to Close 100 Branches This Year
Other Bank News Today
A bank has now unexpectedly frozen $48K in a customer’s account according to a report from the NBC-affiliated news station, WSMV.
Torrie Jackson says she and her husband received more than $68,000 in back taxes from the IRS earlier this year, depositing the money into their Green Dot Bank account.
Jackson says she began withdrawing large sums of money in July with the intention of closing the account, when the bank blocked her from accessing the remaining $48,000.
“You freak out because you need those funds to take care of your business. Our kids had some things, so we were going to help them pay off some bills.”
According to Jackson, her account was flagged due to a vague and unexplained suspicion of unusual activity, reports DH.
“All I did was withdraw my money, and they could not explain to me what the unusual activity was.”
Jackson says Green Dot requested that she verify her identity to regain access to her account. So she sent the bank a copy of her driver’s license, a utility bill and a copy of her IRS refund letter.
But according to Jackson, the bank refused to validate her documents, and the funds in her account remain frozen more than two months later.
“I call them every day and they have the same answer. It’s devastating. I really don’t know what to do at this point.”
In a statement, Green Dot says it has reached out to the IRS about Jackson’s funds.
“We have communicated our concerns regarding the funds to the customer and have provided guidance on who to contact, including the IRS, for information and updates on the status of the funds. It is our understanding the IRS is processing this case and more information should be available for the customer soon.”
Jackson says she’s received an entirely different message from the IRS.
“I’ve called the IRS. The IRS said they have no idea what they’re talking about. I was told once the IRS issues a tax refund, their hands are out of it.”
Also Read: A US Bank is Now Denying Customers Access to Money
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