Three of America’s largest banks are getting smaller. And that pattern is not likely to change anytime soon.
And disappointing fourth quarter results are a reminder that they could keep getting smaller for some time to come.
Banks have spent the last few years in a cost-cutting frenzy, thanks to new regulations that limit their ability to fund their businesses with borrowed money. The industry still isn't as profitable as it was before the financial crisis, and the banks have paid out tens of billions of dollars in penalties and settlements since the 2008 meltdown. It's a recipe for cost cutting, in a big way.
Here's a few of the symptoms, as outlined in the latest round of quarterly results.
JPMorgan Chase got rid of almost 2,500 ATMs in the last three months of 2014.
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The bank's ATM count fell 12% in the fourth quarter, partially thanks to removing some machines from CVS, Hess, and Speedway, Bloomberg News reported. The bank now has 18,056 ATMs, down from 20,513 at the end of the previous quarter.
Why get rid of ATMs? With banks looking to cut costs, cutting ATMs outside of the bank's own branches are a natural place to start, as they have to pay rent and maintenance costs.
Bank of America is cutting branches.
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