Deals

JPMorgan Tells Banks to Partner Up as U.S. Deposit Drain Looms

  • Crunch may be felt this December as Fed’s policy reverses
  • Midsize-bank deals already underway in quest for deposits
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JPMorgan Chase & Co. has some advice for regional banks: A deposit drain is coming, so merge while you can.

The company’s investment bankers are warning depository clients that they may begin feeling the crunch in December, thanks to a byproduct of how the U.S. Federal Reserve propped up the economy after the financial crisis, according to a copy of a confidential presentation obtained by Bloomberg News and confirmed by a JPMorgan spokesman.