JPMorgan Chase, Wells Fargo and Bank of America Customers Holding $2,620,000,000,000 in Uninsured Deposits As Americans Pour Cash Into Unprotected Accounts
New numbers show customers at JPMorgan Chase, Wells Fargo and Bank of America are piling money into unprotected accounts.
The lenders’ quarterly Call Reports, submitted to the Federal Financial Institutions Examination Council (FFIEC), show the banks’ customers now collectively hold $2.62 trillion in uninsured cash.
That breaks down to $1.15 trillion in uninsured deposits at JPMorgan Chase, $652.7 billion at Wells Fargo and $821.9 billion at Bank of America.
US banks and the FDIC promise customers that deposits up to the amount of $250,000 will always be covered in the event of a collapse – but anything in excess is not insured.
That leaves a serious pile of cash at risk – money from businesses, retirees, and families that could vanish overnight if a bank fails.
According to the Federal Deposit Insurance Corporation (FDIC), uninsured deposits at US banks grew across all asset size groups in the fourth quarter of 2024, based on reports from 4,487 FDIC-insured institutions.
Uninsured deposits surged by $126.6 billion, significantly outpacing the $43.7 billion rise in insured deposits during the same period.
In 2023, the FDIC protected all uninsured depositors at the disastrous, sudden failure of Silicon Valley Bank (SVB) by invoking a systemic risk exception, ensuring no losses despite $100 billion-plus in uninsured funds.
In contrast, at smaller banks like Republic First Bank, which failed in July of last year, uninsured depositors faced losses and received only partial recovery from asset sales since no systemic risk was declared.
The growth in uninsured deposits coincided with strong earnings numbers across the banking industry, with a reported total net income of $66.8 billion.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post JPMorgan Chase, Wells Fargo and Bank of America Customers Holding $2,620,000,000,000 in Uninsured Deposits As Americans Pour Cash Into Unprotected Accounts appeared first on The Daily Hodl.