Why are big banks suddenly rushing to shut down so many local branches all over the nation?  As I have discussed in previous articles, U.S. banks are currently sitting on hundreds of billions of dollars in unrealized losses.  When financial institutions get into trouble, they start getting really tight with their money and they start cutting costs.  In addition to laying off workers, our banks have been cutting costs by permanently closing local branches.  For example, between November 12th and November 18th, the sixth largest bank in the United States initiated filings to close 19 more local branches…

America’s sixth-largest bank, PNC, has confirmed the closure of 19 more branches nationwide, following a staggering 203 branch closures earlier this year. This decision, aligning with the bank’s shift towards digital banking, is raising concerns among customers who prefer traditional banking methods.

Scheduled for February 2024, the closures will primarily impact ​Pennsylvania, where the majority of branches marked for closure are located. However, several branches in other states, including ​Illinois, ​Texas, Alabama, New Jersey, Ohio, Florida, and Indiana, will also be shutting their doors, leaving customers in these regions with limited access to in-person banking services, The Sun reported.

Of course PNC has lots of company.

During that exact same week, several other prominent banks made similar moves…

JPMorgan Chase followed closely with 18 filings—three in Ohio, two each in Connecticut and South Carolina, and one each in 11 states, including New York, Illinois, Florida, and Massachusetts.

Citizens Bank came in third with eight branch closure filings—six in New York, and one each in Massachusetts and Delaware. Minneapolis-based U.S. Bank filed for seven closures—three in Tennessee and one each in Missouri, Wisconsin, Ohio, and Illinois.

Bank of America made five filings—two in New York and one each in Texas, Massachusetts, and California.

Citibank filed for two branch closures, and Sterling, Bremer, First National Bank of Hughes Springs, Windsor FS&LA, and Aroostook County FS&LA made one filing each.

Altogether, banks filed to shut down 64 branches.

Read that last sentence again.

In just one week, U.S. banks decided to shut down a total of 64 branches.

That is stunning.

What we are witnessing right now is a tsunami of branch closures.

Unfortunately, even more trouble is coming for our banks because the real estate industry is a total mess right now.

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