Bank Of America Is Getting Flooded With Cash. During The SVB Crisis, There Were Apparently Inflows Of Over $15 Billion.

The closing of three American banks in a week has resulted in a fresh inflow of funds for Wall Street's largest organizations, with Bank of America apparently just receiving over $15 billion in deposit accounts.

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Customers of numerous regional and smaller banks appear to have been alarmed by the failure of Silicon Valley Bank SIVB, Signature Bank, and symmetric encryption lender Silvergate Bank, leading them to seek relative safety in the larger banks.

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According to a Trade Algo article published on Wednesday that cited insiders with knowledge of the situation, Bank of America BAC, -2.12% had received a total of $15 billion from this money tsunami. The bank's shares fell 1.4% in premarket trade, and a spokeswoman declined to comment to Trade Algo.

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The report said that other significant financial institutions, including Citigroup C, -4.89% and Wells Fargo WFC, -3.73%, had also witnessed billions of dollars in additional client deposits but had not yet made that information public.

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Furthermore, State Street Corp. CEO Ron O'Hanley said on Trade Algo that Moody's Investors Service's decision to change its outlook on the U.S. banking sector from stable to negative on Tuesday was "a catastrophic overreaction."

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On both the asset and liability sides, there were many unusual circumstances surrounding the institutions in question, according to O'Hanley's statement on Wednesday. When credit agencies treat entire industries uniformly, I don't think it's beneficial.

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While most haven't fully recovered from the extreme stress seen in recent days, shares of a number of regional banks showed signs of extending Tuesday's recovery on Wednesday.

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First Republic Bank FRC, -9.16% shares increased 5% in Wednesday's premarket trading, but as of Tuesday, they were still down 51% for the week. The Zions Bank. Shares of ZION, -0.03% plummeted 6% before the market opened and are still down 22% this week. The shares of Western Alliance Bancorp WAL, 8.50% increased by 6%, although it is down 39% for the week.

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Recent days have seen investors struggling to keep up with the swift-moving developments in the financial sector. The U.S. government launched the new Bank Term Funding Program over the weekend in response to Signature Bank's failure, which came only days after Silicon Valley Bank, a division of SVB Financial SIVB, shut down due to a surge in withdrawals. The program is intended to protect unsecured deposits.