More Americans are now pulling money out of big banks according to the latest report conducted by the Federal Reserve.
As money quickly exits traditional banks, we’re seeing a massive influx of capital enter money market accounts, which tend to have some sort of small return.
New stats from the Federal Reserve Economic Data (FRED) system show that $48.81 billion in deposits exited American bank accounts from August 10th through the 16th.
In early August, it was reported that 25 of the largest US banks saw a record plunge of $174 billion in deposits, per FRED data.
“In the last year, a the total amount of deposits in American banks has dropped from $18.03 trillion to $17.29 trillion – a decline of $740 billion,” reports DH.
The massive drop in deposits comes as money market funds record the largest level of inflows in six weeks as investors look for more stable returns.
Data from Refinitiv Lipper shows investors recently made $32.29 billion worth of purchases in money market funds in one week, per Reuters.
“By sector, investors exited healthcare, financials, metals & mining, and utilities sector funds to the tune of $747 million, $579 million, $556 million and $497 million, respectively.”
Meanwhile, U.S. bond funds faced $1.5 billion worth of outflow, compared with about $737 million in net purchases a week ago.
U.S. high yield and short/intermediate investment-grade funds witnessed $1.27 billion and $1.23 billion worth of net selling, respectively, but general domestic taxable fixed income funds saw an inflow of about $1.35 billion.”
“This breakdown does not give the American people a quick pulse beat on the dangers lurking in the U.S. banking system – a system that imploded in 2008 and was on its way to imploding again this spring until the Fed stepped in with another bailout program,” says Wall Street on Parade.
Also Read: The US Treasury Direct is Now Freezing Customer Accounts
Other Banking News Today
Retirees are now unable to gain access to money as users on social security continue to report being locked out of their bank accounts.
Last week I reported that Green Dot Bank had been freezing some retiree accounts when a customer reported a painful experience that many others are facing today.
Beth Williams, 78, said she has been a WMC cardholder for 10 years now and has been unable to gain access to her WMC/Green account for 20 days since August 4.
But she’s only one of many more retirees unable to gain access to money.
“I have been going through the same thing with green dot. My funds were hacked at the beginning of August, and I’ve got nothing but the run around from them. They keep telling me my card is on its way. It was supposed to be here August 23 now they’re saying the 31st..I’m on SS and they’re holding my money hostage. What is going on!!” Sandra Machuga reported to FrankNez.
Raymond Barnes of Illinois says he’s having the same problems.
“I’ve been trying to get a replacement card since Aug. 2nd. Have contacted WMC twice weekly waiting 40 minutes on hold each call. I’ve contacted the BBB, filed a complaint with the Federal Reserve and hoping with the amount of complaints that a Class Action Suit insues.
We should be reimbursed daily in the amount of overdraft fees for failure of this Bank to allow us the availability and use of our money. I’m unable to pay bills, get gas, pay my rent etc. They credited a lousy $25 to pacify us. I want access to my money immediately.”
The Better Business Bureau (BBB) has now reported a new wave of customer complaints about frozen accounts at the popular US bank.
For the fourth week in a row, customers at the Walmart and TurboTax-linked Green Dot Bank have said they are completely unable to access their money.
The bank, which says it has 33 million customers, is being scrutinized by the Better Business Bureau over a “pattern and influx of complaints against Green Dot”.
Daily reports are coming in from Ohio, Arizona, D.C., Minnesota, Michigan, New York, Texas, California, Pennsylvania, Missouri, and many other states.
Also Read: Banks Are Now Closing Thousands of Accounts Daily
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