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Is A Financial Crisis Already Here? US Banks Are Closing 100s Of Branches And Laying Off 1000s Of Workers

I know that there is a lot going on in the world right now, but I just had to write about what is happening to our banks.

High interest rates and chaos in the real estate industry are combining to put an enormous amount of pressure on our largest financial institutions.  As a result, banks are getting very tight with their money, they are closing down hundreds of branches, and they are laying off thousands of workers.  We are in the early stages of the worst financial crisis since 2008 and 2009, and I fully expect conditions to get even worse in the months ahead.

During the first week of October alone, U.S. banks closed a whopping 54 local branches…

Major US banks are continuing to close branches across the US, leaving an increasing number of Americans without access to basic financial services.

Bank of America axed 21 branches in the first week of October, according to a bulletin published by the Office of the Comptroller of the Currency (OCC) on Friday.

Wells Fargo shuttered 15, while US Bank and Chase reported closing nine and three respectively.

In total, some 54 locations had either closed or were scheduled to close between October 1 and October 7.

That is just one week!

Of course bank branches have been closing at a frightening pace for quite some time now.

Last year, U.S. banks shut down about 2,000 more branches than they opened…

Banks are closing branches faster than they’re opening new ones. U.S. banks closed over 3,000 branches last year while opening just 1,000. JPMorgan Chase led in branch closures last year, shuttering 144 branches, while opening 133. The trend will likely continue as banks face staunch competition for deposits and younger customers from online banks, fintech firms and Big Tech.

Unless you live under a rock, I am sure that you have noticed this happening in your own local area.

For many Americans, a “trip to the bank” is no longer just a few minutes away.

And our banks are also laying off staggering numbers of workers here in 2023…

The largest American banks have been quietly laying off workers all year — and some of the deepest cuts are yet to come.

Even as the economy has surprised forecasters with its resilience, lenders have cut headcount or announced plans to do so, with the key exception being JPMorgan Chase, the biggest and most profitable U.S. bank.

Pressured by the impact of higher interest rates on the mortgage business, Wall Street deal-making and funding costs, the next five largest U.S. banks have cut a combined 20,000 positions so far this year, according to company filings.

The banking industry is in trouble.

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4 thoughts on “Is A Financial Crisis Already Here? US Banks Are Closing 100s Of Branches And Laying Off 1000s Of Workers”

  1. The more banking goes online, the less physical locations and employees they need. I can’t remember the last time I interacted with a teller. All of my banking is done online or at the ATM.

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