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Deposit Growth At Both Bank Of America And Chase

Friday, April 15, 2011 - 7:46 AM
Even though Bank of America reported a Q1 drop in profits while Chase reported a record profit, one thing both reports had in common was an increase in deposits.

From BofA's Q1 report, "Average deposit balances were above $1 trillion, gaining 4 percent from the year-ago period and 2 percent from the fourth quarter of 2010."

From Chase's Q1 report, average total deposits were $348.1 billion, up 4% from the prior year and 3% from the prior quarter.

I think this says a lot about the interet rate environment when these major banks that pay so little interest can grow deposits.
4
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,713
1. Friday, April 15, 2011 - 9:35 AM
I wonder if these deposits are large and the owners believe these banks are too big to fail? Do you think they did it for a perceived feeling of security? I can think of no other reason.
5
AllyAlly783 posts since
Jan 16, 2010
Rep Points: 2,278
2. Friday, April 15, 2011 - 3:11 PM
Chase recently offered a targeted $100 bonus for depositing $10,000 in a savings account for 90 days.

They also just ended a "Double your Deposit" that paid up to $5,000.

Those sound like great reasons to me!
1
AtlantaWolfAtlantaWolf38 posts since
Jan 16, 2010
Rep Points: 170
3. Saturday, April 16, 2011 - 8:00 PM
I hate reading that their deposit base is increasing. The biggest mistake the govt and FDIC made during the crisis was allowing these banks to acquire other huge banks for virtually nothing. These guys made out like bandits. I am willing to bet when the history is written of this time period, this will be viewed as a colossal error with grave ramifications.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
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