It has been just revealed the fact that there is a massive cash withdrawals from the popular bank JPMorgan Chase. Check out more details about what has been going on.
Massive money withdrawal from JPMorgan Chase
In the past year, customers have withdrawn $200 billion in deposits from JPMorgan, a large American bank that has faced numerous fines, losses, and scandals.
The bank’s Q2 earnings presentation for this year indicates that deposits, excluding those from First Republic Bank (which JPMorgan acquired in the previous year), were reduced year-on-year to $2.3 trillion from $2.5 trillion.
There has been a decline in deposits following the release of a Gallup poll. The poll is similar to ones conducted in 2008 before the Great Financial Crisis, and it revealed that almost 50% of Americans now have concerns about their funds in banks or other financial institutions.
“After several recent high-profile bank failures in the U.S., about half of Americans are concerned about the safety of the money they have in banks or other financial institutions.
This is on par with the level of worry measured during the financial crisis in 2008 when financial institutions previously believed to be ‘too big to fail’ collapsed.”
According to JPM’s earnings report, CEO Jamie Dimon – a strong opponent of Bitcoin and cryptocurrency – highlighted a concerning risk that the bank is facing. As inflation and interest rates continue to rise, customers may be depleting their cash reserves at an alarming rate. alarming rate.
“There are still salient risks in the immediate view, many of which I have written about over the past year.
Consumers are slowly using up their cash buffers, core inflation has been stubbornly high (increasing the risk that interest rates go higher, and stay higher for longer), quantitative tightening of this scale has never occurred, fiscal deficits are large, and the war in Ukraine continues, which in addition to the huge humanitarian crisis for Ukrainians, has large potential effects on geopolitics and the global economy.”
