Bank of America benefited from Silicon Valley Bank's collapse as it received over $15 billion in new deposits
Per CNBC TV18
Bank of America is among the entities that have benefited greatly from the collapse of Silicon Valley Bank. The bank received over $15 billion in new deposits, per Bloomberg.
Silicon Valley Bank recently collapsed as more users started withdrawing money, and the bank struggled to supply deposits. After this, there was an influx of deposits toward big banks, including Bank of America.
Other banks that benefited from the collapse of Silicon Valley Bank included JPMorgan Chase & Co., Citigroup Inc., and Wells Fargo & Co. These banks reportedly received billions in new deposits. Still, only a few numbers have been reported so far, with Bank of America's $15 billion being one of them.
Bank Julius Baer & Co's Mark Matthews gave a statement regarding how there will be a larger inflow of deposits toward big banks. He also mentioned the fact that there was an impact guarantee even for deposits above $250,000.
Matthews: "What is going to happen is deposits will flow into big banks and if you combine that with the fact that there has been an implicit guarantee for all deposits"
Matthews said this would result from bailing out other banks like Signature Bank. He then noted that in the long term, bigger banks would be fine.
The $15 billion in deposits came after Bank of America saw deposits drop by $8 billion by the end of 2022 compared to its Q3 numbers. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 for each depositor of assured banks.
It was recently revealed that Silicon Valley Bank failed to have a Chief Risk Officer for nine months in a row from April 2022 to January 2023. The company's CEO and CFO have yet to comment on the investigations.
Over the past two years, Silicon Valley Bank insiders reportedly sold over $84 million worth of stock.
See flow at unusualwhales.com/flow.
Other News:
- Silicon Valley Bank had no Chief Risk Officer for 9 months, from April 2022 until January 2023
- Insiders at Silicon Valley Bank sold more than $84 million worth of stock just over the past two years
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