Bank of America rakes in $15 BILLION as panicked customers ditch smaller lenders for ‘too big to fail’ firms in wake of SVB crisis - with ‘goliaths’ like JP Morgan also ‘winning’, analysts say

DAILYMAIL.COM ^ | 15 March 2023 | HELENA KELLY

[dennisw]

With 'goliaths' like JP Morgan also 'winning', analysts say

Jittery customers are flocking to major banks in the wake of the SVB collapse One analyst said 'Goliath is winning' as some speed up their onboarding process to cope with the new demand It comes as SVB's spectacular fall from grace continues to wreak havoc on Wall Street

Bank of America has reportedly raked in $15 million in new deposits as customers flee small lenders for 'too big to fail' firms in the wake of the Silicon Valley Bank collapse.

So-called 'goliath' banks such as JP Morgan and Wells Fargo are being inundated with applications, with some taking steps to speed up the onboarding process.

Meanwhile another senior banking executive told the Financial Times: 'The calls have been coming in today like airplanes stacked on a snowy day at O'Hare airport.'

Insiders also told Bloomberg that around $15 billion has been deposited to the Bank of America alone.

The Bank told dailymail.com it would not comment on the figure and that deposit numbers were only disclosed during their earnings reports.

JPMorgan has reportedly shortened the wait time for opening an account and is speeding up the time it takes for new corporate customers to access funds so they can pay staff at the end of the week, the Financial Times reports.

[DallasBiff]

Go woke, go broke.

[nickcarraway]

B of A is awful.

[moovova]

Is it $15 billion or $15 million?

[crusty old prospector]

It’s $15 trillion.

[dennisw]

I have $3000 that I’m pulling out of Wells Fargo. Doing it electronically on the internet. No charge, going into a money market that is all T-Bills

I don’t trust Wells. They screwed up their employees paychecks last week

[Osage Orange]

BOA is a bank I will never do biz with....

Personal history...

Long, long time ago.

[thefactor]

Big banks seem to be able to absorb stupid mistake that are made by their managers while smaller banks can’t. But if the govt is just gonna bail you out, why not keep your money in smaller banks? There’s no risk.

[Osage Orange]

Wells Fargo is another bank I don't trust and they were jerks to deal with.

Long time ago,,,,but I will never forget.

[Varda]

Bank of America stole money from my Dad. I’d never trust them with anything.

[fhayek]

While it may seem counterintuitive, having too many deposits may not be such a great thing. I mean, just because you have more money to lend/invest does not mean there are more credit worthy people to lend it to. You have to start loosening your standards just to try to maintain decent returns.

The eternal question. What could go wrong?

[americas.best.days...]

So the covid crisis killed small businesses with sales diverted to Wal-Mart, target etc. and banking crisis sends $ to the big banks. Seeing a pattern.

[moovova]

“It’s $15 trillion.”

“A trillion here, a trillion there, and pretty soon you’re talking real money”

[Paladin2]

“B of A is awful.”

NOT American. But then Wells Fargo is a stagecoach robbery in progress...

[dfwgator]

“We no longer live in a world of nations and ideologies, Mr. Beale. The world is a college of corporations, inexorably determined by the immutable bylaws of business. The world is a business, Mr. Beale. It has been since man crawled out of the slime. And our children will live, Mr. Beale, to see that perfect world in which there’s no war or famine, oppression or brutality — one vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock, all necessities provided, all anxieties tranquilized, all boredom amused.” - Arthur Jensen (Network)

[hanamizu]

B of A is awful.

---

I think everyone loves to hate BofA. My local banks got gobbled up by regional banks which got gobbled up by national banks until I found myself doing business with BofA, which, of course, got gobbled up by Nations Bank of N.C. which kept the BofA name. Then the new BofA abandoned our part of Missouri and our accounts are now with a smaller regional bank again.

I had no complaints with BofA and found their nation-wide network convenient when traveling. Still have BofA credit cards which I rarely use.

[StAnDeliver]

It is extraordinarily telling that The White Hospice is papering over 2 of the top 3 banks with "unrealized" (LOFL) CRE debt exposure.

[DoughtyOne]

I’ve been with BofA since 1988.

Honestly, I have had people tell me for 35 years now, that
Bank of America was the worst there was.

I’ve never had a single issue with them.

Yes, I am sure that it does things I don’t like. Folks
any bank I choose is one board meeting away from doing
the same things. I’m not going to play hop-scotch with
my financial institutions.

At times when I needed more spending power, BofA gave it
to me without my even having to ask. None of the other
institutions I have dealt with was anywhere near as
helpful as this bank has been.

Now my decision could come back to haunt me. I understand
that. Any other bank could go belly up too. And the folks
who set up the banking rules and enforce them could force
them to do things I don’t like.

It’s a crap shoot at best.

[Old Grumpy]

I agree!