With negative interest rates everything is turned upside down and what was once good is now bad. Savers are a pest for banks and the indebted are their best customers. So the reaction of European banks has been as expected, raising fees, charging interest to savers and entering fully into a mortgage war.
But in the U.S. we are reaching another level and it is not just that they charge you for your money, they don’t accept it, they invite you to take your money elsewhere.
This is the case of JP Morgan, which has asked some of the companies that have the most funds deposited in the bank to transfer them to other entities, reducing their deposit base by 200,000 million dollars, a measure that is being extended to other banks. As Jennifer Piepszak, JP Morgan’s chief financial officer, recently commented: “It’s a problem for us in the short to medium term”.
This also coincides at a time when savings levels have skyrocketed with the market awash with liquidity having to go to other assets ranging from the stock market to cryptocurrencies, perhaps that is the reason to see how they have skyrocketed in recent months.
Fortunately, not all banks are rejecting, for the moment, their clients’ money and there are still many, especially the small ones and the “neobanks” that are still trying to attract savings clients.