SVB's collapse sends small-bank customers running for shelter in big Wall Street banks

• Silicon Valley Bank's collapse is Wall Street's gain as customers flee smaller lenders, per the FT.
• Deposits are pouring into JPMorgan, Citi and Bank of America thanks to fears about smaller banks' stability.
• "The calls have been coming in today like airplanes stacked on a snowy day at O'Hare airport," a banker said.

Silicon Valley Bank's collapse is Wall Street's gain as worries about stability spur customers of smaller US lenders to move their money out.

JPMorgan Chase, Citigroup and Bank of America are among the big Wall Street banks that have seen a flood of requests to transfer in deposits, the Financial Times reported Tuesday, citing people close to the matter said.

Bank executives have called it the biggest movement of deposits in more than a decade, the report said. The rush has forced some large lenders to expedite the normal onboarding process for clients.

The flight to big banks comes despite the US government taking emergency measures to stop the spread of potential bank runs following Silicon Valley Bank's failure.

"The calls have been coming in today like airplanes stacked on a snowy day at O'Hare airport," one senior banker told the FT about the number of new depositors moving out of regional lenders.

SVB's collapse marked the biggest bank failure since the 2008 financial crisis, and the Federal Deposit Insurance Corp. took control of the lender on Friday.

The turmoil sparked fears that similar companies could go down under similar pressure, prompting investors to shun financial-sector stocks. Meanwhile, customers of smaller lenders started to look to the safety of "too big to fail banks."

Over $200 billion in cash deposits if up for grabs from customers of SVB and Signature Bank, which also failed and was seized by the FDIC. The startup founders that were the bedrock of those banks' customers are also turning to big banks.

JPMorgan is accelerating how soon new corporate customers can access funds, per the FT. Meanwhile, Citi's private bank is trying to open accounts within one day of application, rather than the typical week or two.

On Tuesday, nerves about the prospects for smaller lenders appeared to have settled somewhat. Shares in First Republic, Western Alliance and PacWest Bancorp were staging a comeback from huge losses notched in the prior session.