US Banks See Record $1 Trillion Deposit In Q1 On Recession Fears Amid COVID-19 - Reports

US Banks See Record $1 Trillion Deposit in Q1 on Recession Fears Amid COVID-19 - Reports

American companies and consumers deposited a record $1 trillion with US banks in the first quarter as they hunkered down for a potential recession from the coronavirus (COVID-19) pandemic, the Wall Street Journal reported

NEW YORK (Pakistan Point News / Sputnik - 24th April, 2020) American companies and consumers deposited a record $1 trillion with US banks in the first quarter as they hunkered down for a potential recession from the coronavirus (COVID-19) pandemic, the Wall Street Journal reported.

A large portion of the $1 trillion flowed into banks during a two-week period in March, the report said on Thursday, citing analysis of Federal Reserve data. The companies were frantically drawing down on credit lines and stockpiling cash to prepare for possible recession, according to the report.

White House Economic Adviser Kevin Hassett said this week he expected historically bad numbers for the world's largest economy in the current quarter, affirming stock market fears of a recession.

The growth in deposits, the report added, showed how different the crisis was to the 2008 recession, when the banks were seen as the "bad guys."

More than half of deposits in the first quarter went to the four largest US banks - JPMorgan Chase, Bank of America, Wells Fargo and Citigroup, the report said.

The United States is the country worst hit by the COVID-19, with more than 840,000 infections and nearly 47,000 deaths. Most of the 50 states in the country are under lockdown, with authorities shuttering non-essential businesses and asking people to stay home in an effort to stop the spread of the virus. Some states have, however, said they were reopening parts of their economy from Friday.