Depositors drained another $126 billion from U.S. banks during the week ending March 22, according to new Federal Reserve data. This time the outflow came from the nation's largest institutions.
The biggest 25 banks lost $90 billion on a seasonally adjusted basis, according to the Fed. The smaller banks, which suffered massive withdrawals the previous week as regulators seized regional lenders Silicon Valley Bank and Signature Bank, were able to stabilize their outflows. They actually gained back $6 billion on a seasonally adjusted basis.
Total industry deposits fell to $17.3 trillion, down 4.4% from the same week a year ago. That is the lowest level since July 2021.
The new numbers reinforce some trends that were already in place. Deposits had been declining at all banks before the Silicon Valley failure, falling each of the first two months of the year. Deposits for all banks were also down 5% annually in the fourth quarter of 2022.
Many observers attribute this industrywide shift to pressure being applied by an aggressive Federal Reserve campaign to lower inflation.
During the early part of the pandemic, when interest rates were historically low, banks were awash in deposits. When the Fed began moving those rates higher to cool the economy, customers who had deposits began seeking out places with higher yields. The first year-over-year deposit decline for all banks came in the second quarter of 2022.
Some of this money is flowing to money market funds. Since the beginning of January, investors have poured $508 billion into those funds, according to a research note from Bank of America, the highest quarterly inflow since a peak earlier in the pandemic. Another $60 billion was added to these assets in the past week.
Government and industry officials have been working to prevent massive deposit outflows in the aftermath of March's bank failures. Regulators pledged to cover all depositors at both banks they seized, hoping that would calm any panic, and also promised to help other regional banks if needed. Eleven giant banks also decided to provide one troubled regional lender, First Republic, with $30 billion in uninsured deposits to stabilize its situation.
The challenge the deposit outflows create for all banks is that if they raise rates on their deposits to keep customers, that could make them less profitable. But if they lose too many customers, as Silicon Valley Bank did, they give up critical funding and may have to sell assets at a loss to cover withdrawals.
Silicon Valley Bank customers withdrew $42 billion in one day, leaving the bank with a negative cash balance of $958 million. That forced regulators to seize the bank, which was the 16th largest in the U.S.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
When Credit Suisse opened its first office in Saudi Arabia in early 2021, Bruno Daher, the cigar-smoking head of Credit Suisse’s Middle East business, declared it a “key growth market”.
Everyone invests with the goal of generating big returns but it’s easy to get distracted by all the short-term noise generated on Wall Street. The key to investing success, according to Raymond James CIO Larry Adam, is to follow a few simple rules. One is to realize past performance does not necessarily guarantee future success. “History has shown that no single asset class has been a consistent winner year after year,” says Adam, “just as no single asset class remains at the bottom.” Secondly,
SmartAsset compares three of the largest investment companies based on usability, trade experience, offerings and cost. Learn more here.
Oil prices surged on Monday after Saudi Arabia and other OPEC+ oil producers announced a surprise round of output cuts, a potentially ominous sign for global inflation just days after a slowdown in U.S. price data had boosted market optimism. The change comes before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which had been expected to stick to 2 million bpd of cuts already in place until the end of 2023. The latest reductions could lift oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday.
Tesla deliveries hit a new record but missed views again, How will TSLA stock react after breaking out Friday? China EV rivals also reported deliveries.
Bank stocks have been beaten down so much this year that they're now starting to look attractive.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist?
Bob Michele, the chief investment officer of JPMorgan Asset Management, has warned of an economic downturn, saying that markets are headed for a rally before an inevitable slowdown. In an interview with Bloomberg on Friday, Michele says risk assets will rise in the next quarter as they did during the Great Recession. "In the next quarter, we could see risk assets rally. You could have a feel-good period, and then the reality catches up," Michele said. "If we've been taught anything this month, y
Tesla on Sunday reported first quarter delivery and production numbers that topped estimates, indicating price cuts it initiated across the globe are boosting demand.
Insiders at Peapack-Gladstone and Bankwell Financial scooped up shares in March as the banking sector tanked after SVB’s collapse.
Crude futures were surging Sunday evening after OPEC and its allies announced a surprise production cut.
Before she started cash stuffing, Jasmine Taylor said she was tired of being in financial distress. She turned that success into 'Baddies and Budgets'
According to a recent report from the Wall Street Journal, McDonald's Corp is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about layoffs.
(Bloomberg) — By just about any measure, Bitcoin liquidity remains low, despite the cryptocurrency’s eye-catching upsurge this year. Most Read from BloombergOPEC+ Makes Shock Million-Barrel Cut in New Inflation RiskUBS to Cut Staff Up to 30%; Prosecutors Look at CS DealSt. Petersburg Explosion Kills Pro-War Blogger TatarskyDubai’s Latest Boom Is Pricing Out the Expats It Once CovetedTesla Deliveries Rise to Record After Slashing Prices on EVsInvestors have been paying more on trades because of
Oil prices jumped about $5 a barrel on Monday's open, jolted by a surprise announcement by OPEC+ to cut production further in an effort to support market stability. The Organization of the Petroleum Exporting Countries and their allies including Russia, shook markets by announcing production cuts of about 1.16 million barrels per day on Sunday. The group known as OPEC+ had been expected to maintain its earlier decision to cut output by 2 million bpd until December at its monthly meeting on Monday.
The sum of $10 million might sound like a lot – and to the average person, it is. But what if you want to retire at just 30 years old and potentially live another 40, 50 or even 60 years … Continue reading → The post Is $10 million Enough to Retire at 30? appeared first on SmartAsset Blog.
Gone are the days of a sub-3% mortgage, commonplace during the housing market boom of the COVID-19 pandemic. Mortgage rates have steadily increased since the Federal Reserve started hiking interest rates in March 2022 to combat inflation. As a result, … Continue reading → The post Best Housing Markets for Growth and Stability – 2023 Edition appeared first on SmartAsset Blog.
Tesla deliveries hit a record in Q1, but fell short of views yet again. Tesla stock is up 68% in 2023, breaking out into a buy zone Friday.
March deliveries from the three Chinese EV makers fell within the companies' guided ranges. Combined deliveries were up month over month and year over year.
Have some extra cash you want to invest? Brokerages are rewarding new clients.
![](https://businesstaxnall.com/wp-content/uploads/2023/04/wp-header-logo-492-1024x683.png)