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Finance: American banks are rejecting deposits

01/03/2021
Categories: Economy/Forex

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Several American banks are asking their customers to keep their money elsewhere. Nathan Stovall, an expert on the American financial system at S&P Global, in a conversation with BBC Mundo, believed that these banks are

inundated with money.

Customers of the largest American banks are complaining about the rejection of their cash deposit. Some of JP Morgan's biggest customers said the bank asked them to keep their money elsewhere. Bank of America, one of the giants of American finance, and Citigroup are part of the list

.

JP Morgan director Jamie Dimon said that the historic investment firm has asked some of the firms that have the most funds deposited with it to transfer them to other entities, reducing its deposit base by 200,000 million dollars.

“The country's biggest banks are awash with money, to the point that some have started rejecting deposits and we may see others starting to do the same,” says Nathan Stovall, an expert on the American financial system at S&P Global, in a conversation with BBC Mundo. According to him, this is an unprecedented situation.

He believes that America is experiencing “a liquidity crisis in reverse. Normally, during a recession, cash becomes a valuable commodity and banks can be very aggressive in raising funds

.”
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