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Banking giants JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C) have warned employees to refrain from poaching clients from banks undergoing stress in the wake of the tumult in the banking sector, Reuters reported Thursday, citing a memo dated earlier this month and a source familiar with the matter.
Staff at JPMorgan (JPM) “should never give the appearance of exploiting a situation of stress or uncertainty,” the March 13 memo said. “We do not make disparaging comments regarding competitors.”
Similar guidance was also given to Citi’s (C) business heads, a source with knowledge of the matter told Reuters, including not speculating on other lenders.
The banking turmoil, triggered by the collapse of several regional lenders within the span of just two weeks, spurred customers to tap larger banks as confidence in the smaller ones weakened. Bank of America (BAC), for instance, reportedly received around $15B in new deposits in the days following the demise of Silicon Valley Bank, (SIVB), Signature Bank (SBNY) and Silvergate Capital (SI).
While banks routinely compete for customers, “we should refrain from soliciting client business from an institution in stress,” the memo from JPM said.
