A wave of customers have put in applications to shift their accounts to top U.S. banks such as JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N) from smaller lenders following the collapse of Silicon Valley Bank, the Financial Times reported on Tuesday.
These banks, including Bank of America Corp (BAC.N), are attempting to accommodate such transfer requests by taking further steps to accelerate the normal sign-up process, among other steps, the FT said, citing several people with knowledge of the matter.
Even the U.S. government’s emergency measures to prevent the collapse of more banks have not prevented depositors from trying to shift their accounts to bigger banks or to shift to money market funds, FT reported.
The Federal Deposit Insurance Corporation intervened on Friday to protect the deposits of up to $250,000, but deposits exceeding that amount – which made up 85% of SVB accounts – are at risk.
Buy Crypto NowCiti would not comment on the report, while JPMorgan and Bank of America failed to reply to Reuters’ requests for comment.
Shares of U.S. regional banks such as First Republic Bank (FRC.N), KeyCorp (KEY.N), and Western Alliance (WAL.N) have plunged on fears of possible bank contagion after the collapse of SVB and Signature Bank (SBNY.O).
