"Stunning Divergence": Latest Bank Data Reveals Something Is Terminally Broken In The US Financial System

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by Tyler Durden
Sunday, Jul 18, 2021 - 08:45 PM

There was a remarkable disclosure in the latest JPMorgan earnings report: the largest US bank - an entity historically best been known for making loans to the broader population at least until the Fed nationalized the bond market - reported that in Q2 its total deposits rose by a whopping 23% Y/Y and up 4% from Q1, to $2.3 trillion, while the total amount of loans issued by the bank was flat both sequentially and Y/Y at $1.04 trillion.

In other words, only for the second time in its history  - Q1 2021 being the first one - JPM had 100% more deposits than loans, or inversely, the ratio of loans to deposits is now 50% (it did post a modest rebound from an all time low in Q1).