People have moved $500 billion into money-market funds and major banks since SVB imploded. JPMorgan offers 3 reasons why the shift will continue.

• Higher rates, QT and trillions in uninsured accounts are pressuring vulnerable banks, JPMorgan said.
• Since SVB, $500 billion has flowed from smaller lenders to money market funds and big banks.
• “An FDIC guarantee of all US bank deposits would certainly help, but it might not be enough to completely stop this deposit shift.”

Deposits could continue moving out of less secure banks, even with bigger guarantees from the government, JPMorgan analysts wrote in a note published Wednesday. 

Vulnerable US lenders have lost around $500 billion since Silicon Valley Bank collapsed, as depositors took their money out in search of safer havens, such as money-market funds and bigger banks.