Silicon Valley Bank Failure Prompts Likes For Other Big US Banks Including JP Morgan, Citi

  • Several customers have applied to shift their accounts to large U.S. banks such as JPMorgan Chase & Co JPM and Citigroup Inc C from smaller lenders after the collapse of Silicon Valley Bank SIVB.
  • JPMorgan Chase, Citigroup, Bank of America BAC, and other large financial institutions are trying to quickly accommodate the surge in requests, taking extra steps to speed up the regular sign-up or “onboarding” process, the Financial Times reported citing several people familiar with the matter. 
  • The Federal Deposit Insurance Corporation stepped in to protect deposits of up to $250,000, but deposits over that amount are at risk.
  • JPMorgan has shortened the waiting time for opening an account and is accelerating the speed at which new corporate customers can access funds, according to the report.
  • Several banks have reassigned employees to jobs connected to account openings.
  • The report also notes that JPMorgan has told bankers there should be no attempts to poach clients from smaller rivals.
  • Large asset managers also reported an influx of cash being pulled from lenders following an anxious few days for bank depositors.
  • Photo via Wikimedia Commons
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