Popular banks close 79 branches in US - companies 'gamble' as customers suffer (2024)

FAQs

Popular banks close 79 branches in US - companies 'gamble' as customers suffer? ›

Wells Fargo, Chase, and Bank of America are closing locations in several states as more customers turn to online banking. In total, 79 stores will be closing all within the span of a month. California has been hit the hardest by the string of closures, with 20 locations having already shut down from April 20 to June 1.

Banks often pursue acquisitions of competitors to cut expenses on overlapping staff, services and facilities. The savings support profits. In recent years, closing branches has often proven integral to deal-related cost-cutting.

There is 1 bank failure in 2024. See detailed descriptions below. For more bank failure information on a specific year, select a date from the drop down menu to the right or select a month within the graph.

JPMorgan Chase – $3.5 trillion

Columbus, Ohio-based JPMorgan Chase is the largest US bank with total assets of $3.503 trillion. Some $2.684 trillion are domestic assets, accounting for 77% of its total assets. The bank operates 4,912 domestic branches and 32 foreign branches.

Bank regulators view any ratio over 300% as excess exposure to CRE, which puts the bank at greater risk of failure. The banks of greatest concern are Flagstar Bank and Zion Bancorporation, according to the screener. Flagstar Bank reported $113 billion in assets with a total CRE of $51 billion.

They close down checking and credit-card accounts in part to keep regulators, who are worried about money laundering and other criminal activity, out of their hair. The closures often happen without warning, and chaos ensues when people lose access to their money for weeks and can't pay their bills.

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

San Francisco-based First Republic Bank goes down as the second-largest failure in U.S. history. Santa Clara, California-based Silicon Valley Bank follows at number three on the all-time list and New York City-based Signature Bank is the fourth-largest bank to fail.

Which bank do billionaires use in USA? ›

JP Morgan Private Bank

“J.P. Morgan Private Bank is the more elite program serving ultra-high-net-worth individuals,” Naghibi said.

Washington Mutual Failure

The collapse of Washington Mutual (WaMu) in 2008 stands out as the largest bank failure in U.S. history, according to the FDIC.

What bank operates in all 50 states? No bank currently operates a branch location in all 50 states, though several of the nation's largest institutions come close.

Future Treasury Secretary Alexander Hamilton founds the Bank of New York, the oldest continuously operating bank in the United States—operating today as BNY Mellon.

Credit unions are generally considered to be safer than banks during economic downturns due to their conservative approach to risk and their emphasis on financial robustness.

The bank is adjusting to the reduced demand for in-person services, which has led to the closure of some branches and the opening of others. The aim is to reduce the number of low-traffic offices. Unfortunately, this means that clients may have to travel longer distances to reach their nearest branch.

There are a number of reasons why a bank might block your bank account, including: Suspected fraudulent activities. Significant breach of account terms and conditions. Consistent overdrafts beyond agreed limits.

Since the end of 2023, the 10-year treasury yield jumped from 3.86% to 4.5% as the Federal Reserve Board has been steadily raising rates to combat inflation. As rates go up, the value of long-maturity securities decreases, inflicting huge losses on many banks.

Citizens, Bank of America, Capital One and Wells Fargo were among the US banks to close a total of 47 branches around the country last week. Banks this year are continuing to shut costly brick-and-mortar locations as the industry increasingly favors online banking.