A flurry of clients has applied to move their accounts to big U.S. banks such as JPMorgan Chase & Co (NYSE:.JPM) and Citigroup Inc (NYSE:C) from smaller banks following the collapse of Silicon Valley Bank, the Financial Times reported on Tuesday.
These banks, which also include Bank of America Corp (NYSE):BAC), are trying to accommodate these transfer requests by taking additional steps to speed up the normal account opening process, among others, the FT says, which relies on several sources close to the process.
Even emergency measures by the US government to stem the collapse of more banks have not prevented depositors from trying to move their accounts to larger banks or switch to money market funds, the FT reported.
The Federal Deposit Insurance Corporation stepped in Friday to protect deposits of up to $250,000, but deposits above that amount — which accounted for 85 percent of SVB accounts — are at risk.
Citi declined to comment on the article, while JPMorgan and Bank of America did not respond to Reuters’ requests for comment.
Shares of U.S. regional banks such as First Republic Bank, Western Alliance and KeyCorp (NYSE:.KEY) have collapsed on fears of possible bank contagion following the bankruptcy of SVB and Signature Bank.
