U.S. banks consider cuts to interest payments for corporate depositors, FT says

U.S. banks are considering more aggressive cuts to interest payments for corporate depositors as they seek to protect profit margins after the Federal Market cut lending rates, Joshua Franklin and Stephen Gandel of The Financial Times reports. Since 2022, lenders have offered better rates as the Fed raised benchmark interest rates to 23-year highs and corporate banks were some of the biggest beneficiaries. Following the first rate cut in over four years, some banks have identified corporate accounts as the ones most subject to changes in savings rates. Companies in the space include Piper Sandler (PIPR), Citizens Financial (CFG), Bank of America (BAC), Citigroup (C), JP Morgan (JPM), U.S. Bancorp (USB), Wells Fargo (WFC), Goldman Sachs (GS), and Morgan Stanley (MS).