In November, the financial tremors from the crisis that began in March continued to reverberate as the total outstanding loans in the Federal Reserve’s bank bailout program experienced a noteworthy surge, escalating by just over $5 billion. The dynamics of the situation became more pronounced during the first week of the month when financial institutions tapped into the Bank Term Funding Program (BTFP), with borrowing spiking at $3.87 billion. Another notable surge in borrowing occurred between November 15 and November 22, according to data from the Federal Reserve.
This trend is indicative of the ongoing challenges faced by banks, underscored by 64 U.S. bank branches filing for closure in a single week. JPMorgan Chase led with 18 filings, spanning multiple states, including New York, Illinois, Florida, and Massachusetts. Citizens Bank followed with eight branch closure filings, concentrated in New York and other regions. U.S. Bank filed for seven closures, and Bank of America made five filings across various states. Other banks, including Citibank, Sterling, Bremer, First National Bank of Hughes Springs, Windsor FS&LA, and Aroostook County FS&LA, also submitted filings for branch closures.
The collective closure of 64 bank branches signals a significant development in the financial landscape, reflecting the evolving challenges faced by the banking sector amid the persisting economic uncertainties.
Sources:
Fed Bank Bailout Program Borrowing Surged in November
US Banks File to Shut 64 Branches in a Single Week—Are You Affected?