US Big Banks Suffer Biggest Deposit Outflow Since April… Until The Fed ‘Adjusted’ Them

Image Source: PexelsMoney market funds saw yet another week of inflows (+$40BN), taking the total AUM to a new record high of $6.508 TN…Source: BloombergThe inflow into MM comes as bank deposits (on a seasonally adjusted basis) dropped a modest $13BN to the week-ending 10/23…Source: BloombergBut, on a non-seasonally-adjusted basis, total deposits plunged $133BN (the biggest weekly decline since April)…Source: BloombergExcluding foreign deposits, it’s even uglier. On an NSA basis, US deposits plunged $131BN – the biggest weekly drop since April (Large banks -$97BN, Small banks -$34BN). But, by the magic of The Fed’s PhDs, the ‘seasonal adjusted’ domestic deposits fell just $3BN (Large banks +$8BN, Small banks -$11BN)…Source: BloombergThis is the biggest Large bank deposit drop since May…Source: BloombergThis should only be worrying if we see liquidity problems in the banking system starting to occur.Wait, what?Source: Bloomberg…and reverse repo usage is collapsing (liquidity needs?)Source: BloombergIs that why USA sovereign risk is blowing out?Source: BloombergAre they holding back a banking crisis for Trump’s victory?More By This Author:Nvidia To Replace Intel In The Dow Jones Industrial Average; Stock JumpsJobs Shock: October Payrolls Huge Miss As Private Jobs Drop For First Time Since 2020China Urges Automakers To Stop Investment In EU Countries Amidst Trade War