Wall Street on Parade website reported Aug. 8 that the biggest 25 U.S.-based banks have lost $970 billion, or 8% of their deposit base since April 13—about one month after the start of the bank crisis with failures in the United States and Switzerland. The biggest 25 banks have lost much more, even proportionally, than smaller regional and community banks, Pam and Russ Martens report, as shown in the form “Assets of Commercial Banks in the United States” updated weekly by the Federal Reserve. Moreover, this outflow is continuing, with 1.5% of total deposits, or $170 billion, lost in three weeks from July 5 to July 26.
This outflow is one of the factors behind Moody’s Investor Service’s “review for potential downgrade” of six big U.S. banks on Aug. 8, and its “negative outlook” on five others. (This is in addition to the 10 banks for which Moody’s actually announced downgrades on Aug. 8, which were primarily smaller banks.)
