Medium-sized Banks Communicating About COVID-19

Goals

To establish how small to medium-sized banks are communicating with their high net worth clientele. During the coronavirus crisis.  

Early Findings

Wells Fargo 

  • Wells Fargo is among the medium-sized banks that have been affected by the ongoing coronavirus crisis. The Financial Services Forum on behalf of Wells Fargo and other small and medium-sized financial institutions have stated both small and high-income clientele. 
  • The announcement provides that even though Forum member institutions have individual substantial liquidity in addition to various funding sources, there is a need to demonstrate leadership and value of the Federal Reserve’s discount window facility. 
  • The communication statement is also meant to encourage other small to medium-sized financial institutions to join in demonstrating the value of the discount window facility of the Federal Reserve. 

 Chase 

  • JPMorgan Chase released its communication in late February 2020. In part, their communication stated that it would use the Federal Reserve discount to remove its stigma. 
  • JPMorgan is also advising its clients on pensions on investments and exploiting the opportunities during the ongoing market turmoil. More so, the bank is advising its clients to diversify into secure mortgage assets from corporate credit. 

Bank of America

  • According to an article published by Reuters, Bank of America Corp (BACN) is engaging its clients during the coronavirus crisis by asking their private clients about their exposure and preparations. This has been made part of the evaluation process at the bank. 
  • Asking their clients about exposure and preparedness in the face of the coronavirus crisis is an additional layer of risk assessment, in a bid to help the bank mitigate losses made on deals, including bond issuance. 

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