- Five major US banks lost a combined $22.8 billion in market value.
- The sell-off was triggered by a report that customers were giving AI agents their banking login credentials.
- JPMorgan lost over $7 billion, while Wells Fargo shed $4 billion in early trading.
- Stocks partially recovered by the close of trading but significant losses lingered.
Banking giants JPMorgan, Morgan Stanley, Wells Fargo, Citi, and Bank of America lost a combined $22.8 billion in market value yesterday, just hours after Axios broke the news about customers handing over account access to AI bots.
JPMorgan alone lost over $7 billion by the open of trading, and Wells Fargo wasn’t far behind at $4 billion. The report detailed that some AI agents appeared to act without a matching customer instruction, even attempting to contact banking call centers.
A Chase spokesperson reiterated, “Customers should not give their username and passwords to anyone.” Wells Fargo stated it had taken steps to block unauthorized agents from accessing funds.
Consequently, Morgan Stanley opened down 1.9% and remained down 1.6% by the end of the business day. Citi gapped down 1.3% and remained 1% lower. Meanwhile, trade publication American Banker corrected its story erroneously claiming Morgan Stanley suffered an AI breach, but the denial didn’t help its stock price recover much.
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