Deposits into big banks like JPMorgan Chase has slowed down
The surge of deposits to smaller banks from big banks like JPMorgan $JPMorgan(JPM.US$ Chase and $Wells Fargo & Co(WFC.US$ has slowed to a trickle in recent days - despite bank failure fears.
It seems that the situation which shook the market globally and in a way, forced US regulators to step in to protect bank customers, started to improve around 16 March (according to knowledge of inflows at top institutions).
But the situation could change if there are any concerns about other banks, especially how JPMorgan will kick off bank earnings season on April 14.
Who’s next in the domino you may ask?
For now, all attention is focused on First Republic $第一共和银行(FRC.US$, the new owner of Silicon Valley Bank, which has teetered over the past few weeks and whose shares have fallen 90% this month. They are also mostly known for its success in serving wealthy customers on the East and West coasts.
First Republic has also hired JPMorgan and Lazard as advisors to prepare ways on how it could involve finding more capital to remain independent or a sale to a more stable bank.
Well, the past few weeks have certainly revealed glaring weaknesses in how some have managed their balance sheets, which could result in even more turbulence. So, how do you think the banking industry will play out?
Let me know in the comments below!
Source: CNBC
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Whiskey_Mick : This article
dear lord… just anyone can start clicking away at the keyboard apparently. First Citizens acquired SVB not First Republic