Deposit Exodus
Two of the largest US banks, Citigroup and Wells Fargo, have experienced a significant decline in deposits over the past year. Citigroup’s deposits fell by $23.3 billion, while Wells Fargo’s dropped by $15.1 billion.
JPMorgan Chase Outlook
JPMorgan Chase, the largest US bank, has also reported a 7% drop in deposits in its consumer banking division. The bank expects deposit balances to remain flat or slightly decline as customers seek higher returns on their cash.
CEO Warning
JPMorgan Chase CEO Jamie Dimon has issued a warning that US banks could face another crisis if the Federal Reserve continues to raise interest rates. He believes that rising rates and a potential recession could put banks and leveraged companies under severe stress.
Key Points
- Citigroup and Wells Fargo have lost billions in deposits over the past year.
- JPMorgan Chase expects deposit balances to remain flat or decline.
- Dimon warns of potential banking crisis if interest rates rise significantly.
