Online Banking Is Being Disrupted Nationwide. Why?

Is it necessary for us to be alarmed by the unexpected emergence of several issues at our financial institutions? Online banking is being disrupted nationwide. Why? A significant number of branches in U.S. banks have been closed, resulting in the termination of numerous employees.

Additionally, a considerable amount of consumer accounts are being abruptly closed without prior notice, as I mentioned yesterday. In addition to the aforementioned issues, our financial system is currently being plagued by a multitude of persistent “glitches”.

As an illustration, the technical malfunction that resulted in paychecks not being deposited in numerous banks on Friday has yet to be completely repaired…

Customers at major U.S. banks including Bank of America and Wells Fargo complained about delays with their direct deposits on Monday, following a glitch with processing payments that began Friday.

The Federal Reserve on Friday said the problem wasn’t related to a cybersecurity issue and that it had been resolved.  But customers on Monday continued to report delays with direct deposits, reaching out to their banks on social media to report that their paychecks hadn’t landed in their accounts as expected.

Wells Fargo and Bank of America referred questions to The Clearing House, a payments company that operates the only private-sector automated clearing house (ACH) system in the U.S.

This is the most prevalent issue I have ever encountered with direct deposits.

It is possible that the Clearing House will fix the issue “as rapidly as possible,” but that could mean virtually anything… Hopefully, we can find out why online banking is disrupted nationwide.

Concurrently, online banking services are experiencing widespread disruptions across the nation. It prompted me to visit downdetector.com in order to verify the information that Steve Quayle was describing on his website.

In addition, I learned that on Monday, all of the major institutions encountered atypical outages.

The screenshot below depicts Chase disruptions…

Here you have it. The synchronicities of these events are not coincidental at all. It was not only one bank but a sequence of common banks including Citi and Bank of America.

So why did there suddenly appear to be such a significant increase in outages?

Does this provide support for the notion that cyberattacks are targeting our financial institutions?

I honestly do not know.

These “glitches” and disruptions will hopefully begin to abate as more normalcy returns. Wishful thinking. 😪

However, the credit crisis that has already begun will not abate anytime soon.

The Federal Reserve reports that lending standards for business loans became even more stringent in the third quarter…

Banks continued to tighten standards for business loans in the third quarter, according to a survey of loan officers conducted by the Federal Reserve.

In addition, a “significant” number of banks tightened lending standards for credit-card, automobile and other consumer loans.

Key details: Banks tightened standards on loans to firms of all sizes. Tightening was accomplished in premiums for riskier loans, spreads of loan rates over the cost of funds and costs of credit lines.

In addition, nearly 80% of small business owners in the United States “are concerned about their capacity to access capital,” according to a recent survey by Goldman Sachs…

Nationwide, banks have become extremely frugal with their funds.

Furthermore, this will have profound ramifications for the economy of the United States beyond the year 2024.

Bad debt has engulfed our institutions since the end of the era of easy credit. Financial institutions are implementing cost-cutting measures by closing branches and striking off employees.

Indeed, at this very moment, Citigroup employees are awaiting word on who will survive the impending surge of layoffs and who will be terminated…

When Citigroup CEO Jane Fraser announced in September that her sweeping corporate overhaul would result in an undisclosed number of layoffs, a jolt of fear ran through many of the bank’s 240,000 souls.

“We’ll be saying goodbye to some very talented and hard-working colleagues,” she warned in a memo.

Employees’ concerns are justified. Managers and consultants working on Fraser’s reorganization — known internally by its code name, “Project Bora Bora” — have discussed job cuts of at least 10% in several major businesses, according to people with knowledge of the process. The talks are early and numbers may shift in coming weeks.