Mystery Exodus: $114B Withdrawn From Banks in Jan.
Fed data shows post-9/11 record
By Matt Cantor, Newser User
Posted Jan 24, 2013 5:03 AM CST
Updated Jan 24, 2013 7:06 AM CST
A Bank of America branch in downtown Miami.   (AP Photo/Lynne Sladky)

(Newser) – The country's biggest banks have seen $114 billion leave their coffers this month, with withdrawals in the first full week of the year hitting a post-9/11 record, according to Fed data. Seasonal adjustment cuts the figure to $52.8 billion, which remains the third-highest ever recorded. Bloomberg is trying to get to the bottom of the mystery. One potential explanation: The government's Transaction Account Guarantee program, which sought to protect smaller banks from runs, ended Dec. 31.

But the smaller banks lost just $26.9 billion this month—0.9% of their deposit base, compared to the 2% lost by the 25 biggest banks. Another theory, then: The records come from "a noisy database," which is particularly "wacky" in the first quarter, says one expert, so maybe we shouldn't make much of the occurrence. After all, it's been an odd month financially, between reactions to the fiscal cliff and a payroll tax hike. It's also possible that, after a good year for the stock market, investors are feeling more comfortable exiting federally-backed accounts. And in the end, "one week is just a very thin slice" of data, says an analyst. Still, stay tuned.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Mystery Exodus: $114B Withdrawn From Banks in Jan. is...
Show results without voting
You Might Like
Showing 3 of 39 comments
Jan 25, 2013 12:40 PM CST
It's just the smart money replacing the family car before the coming inflation tsunami.
Jan 25, 2013 11:42 AM CST
Bank: A clip joint run by very smart thieves who can dream up 1,000 ways to surcharge you into a negative balance, or screw you over in about the same number of ways. Maybe people are starting to figure this out...
Jan 24, 2013 10:02 PM CST
so i withdrew some of my money no big deal bought a corvett and a rolllllllllllllles a big one!