$84.5bn in deposits have now exited the biggest US banks in a single quarter including JPMorgan Chase, Wells Fargo, and Citi.
All three banks recorded a massive outflow of deposits in Q3, according to each bank’s most recent reports.
JPMorgan Chase’s new Q3 earnings report details a $31 billion decrease in deposits from $2.387 trillion to $2.356 trillion.
Wells Fargo reported a $7.1 billion decrease from $1.3474 trillion to $1.3403 trillion, while Citi recorded a $46.4 billion drop from $1.3199 trillion to $1.2735 trillion.
“Despite the drop in deposits, JPMorgan Chase recorded a net income of $13.2 billion,” reports The Daily Hodl.
“Zooming out, data from the Federal Reserve Bank of St. Louis shows deposits across all commercial banks are down from an all-time high of $18.203 trillion in August of last year to $17.365 trillion at time of publishing.”
JPMorgan CEO Jamie Dimon released the following statement:
“Currently, U.S. consumers and businesses generally remain healthy, although, consumers are spending down their excess cash buffers.
However, persistently tight labor markets as well as extremely high government debt levels with the largest peacetime fiscal deficits ever are increasing the risks that inflation remains elevated and that interest rates rise further from here.
Additionally, we still do not know the longer-term consequences of quantitative tightening, which reduces liquidity in the system at a time when market-making capabilities are increasingly limited by regulations.
Furthermore, the war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships.
This may be the most dangerous time the world has seen in decades. While we hope for the best, we prepare the firm for a broad range of outcomes so we can consistently deliver for clients no matter the environment.”
Other Bank News Today
A massive Wells Fargo glitch has erased money from several customer accounts plunging some users into negative.
“Customers at one of America’s biggest banks are reportedly seeing erroneous withdrawals hit their accounts”, says TDH.
Concerns have risen over a rather mysterious glitch at Wells Fargo that resulted in unexplained withdrawals and a “debit card pending correction” tag.
Thousands of people were affected according to CBS-affiliated news station WNCT.
“I stopped using Wells Fargo years ago because they CONSTANTLY screwed with my money there were multiple times I suddenly had hundreds missing and bank account they claimed it was a “glitch” it happened to me about three times,” reports one Wells Fargo customer.
“@Ask_WellsFargo has anyone gotten their money back from the debit card pending correction? My accounts are still pending it’s been 5 days this is ridiculous,” says another user on X, formerly known as Twitter.
A Wells Fargo representative says the bank suffered a technical glitch and the lender will be automatically rolling back the charges and any fees connected to the issue.
“Due to a systems issue that has been resolved, some customers may experience a delay in posted transactions. The majority of customers are not affected by this issue.
Any overdraft fees incurred as a result of this incident will be automatically reversed.”
In September, the bank froze a customer account which caused a scandal for the already-then scrutinized company since this type of incident has occurred various times.
Today, the bank is shuttering several branches nationwide and undergoing massive layoffs.
Also Read: Customers Are Now Unable To Access Money From A Bank
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