$200 billion were withdrawn from JPMorgan (NYSE:JPM) this year as the bank has faced numerous scandals, losses, and fines, per DL.
“JPMorgan’s latest earnings presentation for Q2 of this year shows that excluding deposits from First Republic Bank, which the bank acquired last year, deposits were down year-on-year to $2.3 trillion compared to $2.5 trillion.”
In June, $79bn was withdrawn from big banks in one week alone.
The Federal Reserve Economic Data (FRED) system states that $79.16 billion exited American bank accounts from the beginning of the month through June 7th.
Another report shows that Americans pulled $472bn from big banks, more than the $100 billion priorly reported for the first quarter of 2023.
Online-only banking models have become a big competitor to traditional banks.
So much in fact that big banks have begun to close several branches across the country.
In Philadelphia, Wells Fargo has closed 17% of its local bank branches since 2020.
PNC is not far behind, shuttering 15% of its branches in the Philadelphia area, per the Philadelphia Business Journal.
As depositors leave the banking system, money market funds have witnessed massive weekly cash inflows.
JPMorgan reported a 67% rise in quarterly profits to $14.47 billion in the quarter ended June 30th.
Other Big Banking News Today
Bank of America (NYSE:BAC) is either freezing bank accounts or closing accounts linked to Coinbase according to a number of customers in the bank’s latest scandal.
Coinbase CEO Brian Armstrong took conducted a poll after a user said their Bank of America account had been closed for no apparent reason after a 15-year run.
The Bank of America customer stated that they do Coinbase transactions directly from the bank.
“This is a war on Bitcoin & crypto”, they said on Twitter.
At the time of this publication, more than 1,400 users voted to have been affected by a similar or same occurrence.
“Closed my account with them in 2010 after 10yrs. Worst bank I ever had,” said one user.
“Following the recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against major crypto players Binance and Coinbase, banking institutions have grown cautious about engaging with these firms,” says Coinpedia.
But this isn’t Bank of America’s first rodeo in violating its customers.
The Consumer Financial Protection Bureau announced Tuesday that an investigation found that Bank of America harmed hundreds of thousands of customers across multiple product lines over a period of several years through a series of illegal practices.
Bank of America is paying a whopping $250 million fine for double charging insufficient fund fees and opening new accounts without customer’s knowledge or consent.
While not everyone may be experiencing Bank of America freeze or close their bank accounts relating to crypto, it’s undoubtly a mess for those who are.
Related: How to Invest in Cryptocurrency for Beginners
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