It seems that the issues in the US banking system continue. Check out the latest reports about this below.
US banking system issues
According to Arthur Hayes, the founder of BitMEX, US banks are expected to face another setback as businesses seek to surpass low-interest rates.
In a new essay, Hayes predicts that the ongoing trend of people leaving the US banking system will continue to worsen.
Based on data gathered by the Federal Reserve Economic Data (FRED) system, American bank accounts experienced a withdrawal of $30 billion between May 10th and May 17th.
Last week, there was a significant rise of over $4 billion in the numbers. The current total deposits of the US banking system amount to $17.15 trillion, which is less than the $18.03 trillion deposits recorded one year ago.
“Over $1 trillion has been removed from the US banking system since last year. The big question going forward is, will this exodus continue? Will businesses and individuals continue to move money from 0% yielding bank accounts into money market funds yielding 5% or 6%?”
Hayes continued and said the following:
“Logic tells us the answer is an obvious and resounding ‘absolutely.’ Why would they not, if all it takes is a few minutes on their smartphones to 10x their interest income? The US private sector will continue to pull money from the US banking system until the banks offer competitive rates that match at least the Fed funds rate.”
Apple banking issues arise
Speaking of financial issues, Apple customers who deposited over $1 billion in just a few weeks are reportedly facing difficulties withdrawing their funds from their savings accounts.
During the middle of April, Apple collaborated with financial giant Goldman Sachs to enable Apple Card users to accumulate interest via a savings account. Stay tuned for more news and make sure to check out our previous article in order to learn more details.
