$90 Billion in Withdrawals From Biggest U.S. Banks Last Week

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In the wake of the Silicon Valley Bank (SVB) failure, America’s 25 biggest banks experienced a huge outflow of deposits last week of $90 billion. According to the latest seasonally adjusted Federal Reserve figures on deposit outflows, from March 10-22, a total of roughly $213 billion was lost in deposits to domestically chartered banks in the U.S. as people rushed to withdraw their funds.  Last week small domestically chartered banks saw an increase of around $6 billion.  Deposit outflows have flooded into U.S. money market funds, according to the Financial Times.  Experts say the current bank turmoil will slowly infect the real economy as lending standards tighten and credit dries up.