Banks Are Going to Cash, Part II

On Wednesday I wrote about how, over the past 90 days, the big four money centers have been shifting into cash and away from lending, trading, and holding reserves in securities. Those money centers are JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC) and Bank of America (BAC) -- and, at least in these organizations, the pattern is clear.

The unclear aspect is the precise driving force behind this shift, and whether it is happening in other banks. It's possible the shift is being driven by regulators' increasing focus on the trading practices of the money centers, as exemplified by Wednesday's developments: Federal prosecutors have brought charges against two former JPMorgan traders concerning the 2012 London Whale trading scandal....747 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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