Released: November 03, 2008

Huge shifts in bank deposits

Source: Kathy Chu and Sandra Block, USA Today

The exodus of money from the stock market and troubled banks is reshaping the financial industry as quickly as any government bailout.

Amid unrelenting economic turmoil, investors are pulling billions of dollars out of the plunging stock market. They’re also withdrawing money en masse from banks perceived as troubled and putting it into others deemed in better shape. And, in a sign of just how nervous Americans have become, some have even started to hoard cash outside of banks.

“People are panicked, and they want something as close to the mattress as they can find,” says Mark Zandi, chief economist at Moody’s Economy.com. “What we’re experiencing now is something we have not seen since the Depression era

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