Three months? Wonder how much more customers will yank by the end of Q4. Pillars of the economy my a$$.😂😂😂😂
https://dailyhodl.com/2023/10/20/84500000000-exits-jpmorgan-chase-wells-fargo-and-citigroup-in-three-months-as-depositors-take-flight/amp/
savings are moving because people are realizing they can make >=4% apy elsewhere vs the 0.25% or less the big bangs are charging.
Customers are wising up to move their money to banks like Ally that actually pay interest on deposits.
In the banking industry, the size of the CEO's salary and the size of his dk are used to measure their power. Charlie is complaining his salary and his dk are still not big enough compared to other peers.
Savings are also dwindling due to increasing white collar layoffs across all sectors. Google layoffs. Read the recent articles. The numbers are staggering.
With LI premium you can also see total number of applications for open roles, many have 1,500+ plus applicants per job post. If a white collar worker lands a job, they’re going to possibly be taking a lower salary than a prior role.
Right now this segment (has traditionally been immune from downturns) is treading water with savings, and soon it’s going to hit where they can’t pay their loans. Those defaults will start to hit financial institutions significantly. If you look across banks, you can see most are preparing for the hit with expense reductions through our own layoffs and increasing capital reserves. The 3.8% unemployment rate is deceiving since blue collar jobs haven’t been hit but white collar is being impacted instead.
Why is this a big deal? That segment has more savings they’re burning through, larger mortgages, higher credit card balances, more auto loans, etc. That means when it is hitting banks early next year. it’s really going to impact us. It’s a smaller segment of customers, but the charge-off exposure is huge.
The economy is not sound.
JPM and Citi both lost more than 4x as many deposits as WF did.
Kind of explains why Dimon was praising Charlie. Charlie actually beat him at something.
This article isn't really commenting on the downfall of the megabanks so much as it's highlighting just how bad the economy is becoming for the average American. People are spending their savings because they can't afford to live on what they make. Yet corporate profits are still soaring. Go America!
I’m not surprised people don’t have their liquid money earning the highest interest possible. This county as a whole is financially illiterate.
I moved everything to CDs and money market accounts
Yes, WF’s deposits dropped by half a percent to $1.34 trillion. That still sounds big to me.
The article wasn’t explicit on where the deposits were moved to but hinted that consumers were drawing down their savings due to increased expenses from inflation.