Bank of America gets more than $20 billion in new deposits after SVB failure
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Silicon Valley Bank’s seizure last Friday sent shockwaves across the global financial system.
PHOTO: AFP
NEW YORK – Bank of America Corp mopped up more than US$15 billion (S$20.2 billion) in new deposits in a matter of days, emerging as one of the big winners after the collapse of three smaller banks in the United States dented confidence in the safety of regional lenders.
The inflows offer a first glimpse into the deluge of deposits that made its way to the country’s largest banks as customers fearful of a spreading crisis sought refuge in the companies seen as too big to fail. The money flowing into the second-largest US bank was described by sources with direct knowledge of the matter, who asked not to be identified as the information is not public.
Silicon Valley Bank’s seizure last Friday – the biggest US bank failure since the 2008 financial crisis – was precipitated by fleeing depositors and sent shockwaves across the global financial system. It also forced the Biden administration to put in place extraordinary new measures to fortify faith in the banking system. In the last week, crypto-focused bank Silvergate Capital closed shop, and the authorities shut down New York-based Signature Bank on Sunday.
A spokesman for Bank of America declined to comment.
Other banks like JPMorgan Chase & Co, Citigroup and Wells Fargo also raked in billions in new deposits, though the figures have not been disclosed yet. BLOOMBERG