The banking sector has been under tremendous stress since March 2023 due to the failure of three regional banks. Despite assurances by the Federal regulators and top executives of large financial institutions, depositors and investors remain jittery about the banking system's stability.
Concerns over the banking crisis led depositors to pull out their money and park it in the high-interest paying money market funds or the ‘too big to fail banks’ like JPMorgan Chase & Co. (JPM), which saw its deposits rise by $50 billion during the first quarter. The company saw its deposits rise 2% year-over-year to $2.38 trillion in the first quarter.
