Excerpt: "Amid record profits ... even as the banks plan thousands of layoffs: Banks, including Bank of America, Barclays, Goldman Sachs, and Credit Suisse, are planning to lay off tens of thousands of workers."
File photo, Wall Street, American International Group (AIG) offices in New York City, 02/24/09. (photo: Mario Tama/Getty Images)
11 Facts About Biggest Banks
08 October 11
11 facts you need to know about the nation's biggest banks.
he Occupy Wall Street protests that began in New York City more than three weeks ago have now spread across the country. The choice of Wall Street as the focal point for the protests - as even Federal Reserve Chairman Ben Bernanke said - makes sense due to the big bank malfeasance that led to the Great Recession.
While the Dodd-Frank financial reform law did a lot to ensure that a repeat of the 2008 financial crisis won't occur - through regulation of derivatives, a new consumer protection agency, and new powers for the government to dismantle failing banks - the biggest banks still have a firm grip on the financial system, even more so than before the 2008 financial crisis. Here are eleven facts that you need to know about the nation's biggest banks:
- Bank profits are highest since before the recession ...: According to the Federal Deposit Insurance Corp., bank profits in the first quarter of this year were "the best for the industry since the $36.8 billion earned in the second quarter of 2007." JP Morgan Chase is currently pulling in record profits.
- ... even as the banks plan thousands of layoffs: Banks, including Bank of America, Barclays, Goldman Sachs, and Credit Suisse, are planning to lay off tens of thousands of workers.
- Banks make nearly one-third of total corporate profits: The financial sector accounts for about 30 percent of total corporate profits, which is actually down from before the financial crisis, when they made closer to 40 percent.
- Since 2008, the biggest banks have gotten bigger: Due to the failure of small competitors and mergers facilitated during the 2008 crisis, the nation's biggest banks - including Bank of America, JP Morgan Chase, and Wells Fargo - are now bigger than they were pre-recession. Pre-crisis, the four biggest banks held 32 percent of total deposits; now they hold nearly 40 percent.
- The four biggest banks issue 50 percent of mortgages and 66 percent of credit cards: Bank of America, JP Morgan Chase, Wells Fargo and Citigroup issue one out of every two mortgages and nearly two out of every three credit cards in America.
- The 10 biggest banks hold 60 percent of bank assets: In the 1980s, the 10 biggest banks controlled 22 percent of total bank assets. Today, they control 60 percent.
- The six biggest banks hold assets equal to 63 percent of the country's GDP: In 1995, the six biggest banks in the country held assets equal to about 17 percent of the country's Gross Domestic Product. Now their assets equal 63 percent of GDP.
- The five biggest banks hold 95 percent of derivatives: Nearly the entire market in derivatives - the credit instruments that helped blow up some of the nation's biggest banks as well as mega-insurer AIG - is dominated by just five firms: JP Morgan Chase, Goldman Sachs, Bank of America, Citibank, and Wells Fargo.
- Banks cost households nearly $20 trillion in wealth: Almost $20 trillion in wealth was destroyed by the Great Recession, and total family wealth is still down "$12.8 trillion (in 2011 dollars) from June 2007 - its last peak."
- Big banks don't lend to small businesses: The New Rules Project notes that the country's 20 biggest banks "devote only 18 percent of their commercial loan portfolios to small business."
- Big banks paid 5,000 bonuses of at least $1 million in 2008: According to the New York Attorney General's office, "nine of the financial firms that were among the largest recipients of federal bailout money paid about 5,000 of their traders and bankers bonuses of more than $1 million apiece for 2008."
In the last few decades, regulations on the biggest banks have been systematically eliminated, while those banks engineered more and more ways to both rip off customers and turn ever-more complex trading instruments into ever-higher profits. It makes perfect sense, then, that a movement calling for an economy that works for everyone would center its efforts on an industry that exemplifies the opposite.
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Too big, is an epic failure, and our government is failing at it's only purpose, sane regulation, and protection of the rights and welfare of "We The People."
No more "corporate" rape, pillage, and plunder, for $ profit at the expense of a healthy future.
AND if I want to use my BIG BANK credit card or ATM card outside the US, not only am I charged a fee for using a "non-BIG BANK" ATM, but if I purchase something with my card, I am now charged "an International Fee!!!"
And these two things just started in the past few months.
I don't trust any of the banks, big or small, really. I want to work in cash only, but there are times when I'm not allowed to pay for necessary things, like renting a car without using a credit card.
This is a WAY scarier time than 2008, because NOW we have "their number," we get it, and IT isn't good AT ALL!
I see a run on the banks happening really soon, if it already hasn't started.
N.
And still the GOP/TP is crying to stop all regulations and any constriction on big business.
If WE don't get the justice department or the Supremes to enforce -- Wait: The Supremes are in bed with the BIG $$$ -- their 2010 "person hood" decision confirms this accusation.
They are the HIGHEST (supremes) -- NOW WHAT? The lame stream media keeps putting Cantor on the news since he came out Friday with his KKK - type accusation against the President (& Occupy Wall Street).
Cantor is insane - just look at him when he speaks! The Turtle from KY is an outlaw biggot -
There must be some judge or lawyer who can stand up for justice. Scalia/Thomas were wined/dined by Koch brothers before 2010 "person hood" decision.
The voting age was enacted within a short period of time by the people signing petitions. NOW - -sign the "get money out of government" on Dillon Radigan's web site.
If we are still around and the TP/GOP governed states have not rigged elections -- VOTE DEM VOTE OBAMA in 2012 -- our only chance.
Get minorities registered (mail in ballots)
Bank profits are the highest because they are using empty foreclosed properties as assets. Take away the properties they scammed from the homeowners and these banks are and have been wholly undercapitalize d. The presidential administrations have allowed these banks to manipulate the laws and have assisted them when they should have seized them. Don't vote for anybody who isn't willing to take down the Federal Reserve and regulate derivatives. See Bernie Sanders' article "Wall Street reform must address the powerful and secretive Federal Reserve" on www.deadlyclear.com.
No! Our only chance is an alternative to vote for in the Democratic primary!
The Repugs have a hugh machine they have been building over the last 40 years or more. We are spread all over. We need some legislation to break up the media monopolies, empeach Supreme Court members who are frauds like Clartence Thomas, to fight Wall Street, to fight the ignorance and disaster Repugs have made of voters, to fight the oil and gas giants, to empower State Banks, etc., etc., etc. We do not need new primaries. And we need to Occupy Wall Street and a lot of other places. VOTE FOR OBAMA!!!!!
Like maybe the White House?
Thanks for the link.
Signed it already and otherwise spread it around my worldwide circle.
These Usurers & ('risk-free') derivativists are USURPING the privilege of a SOVEREIGN government to print & issue its own Public currency in the Public interest.
"In early times, the creation of money was the sole privilege of the kings or other sovereigns– namely the sovereign people, acting through their Government. This principle is firmly anchored in our Constitution and it is a perversion to transfer the privilege to private parties to use in their own real, or presumed, interest.”
- The 'Chicago Plan', 1939
"The founders of the Republic did not expect the banks to create the money they lend. John Adams, when President, looked with horror upon the exercise of control over our money by the banks."
- The 'Chicago Plan', 1939
Everyone has to take into consideration that working in an underground or black market economy is the only way to guarantee that the banks get no more of the money that you pay in tax dollars. Cash and carry is the way to go. If it doesn't get to Washington the GOP/TP cannot siphon the money into the pockets of the 1%.
We have to think that the big crooks in the 1% if as Americans we will have anything to show for our labors.
I think the idea of depriving BoA and the other big banks of our money is the best one. And, if you can get a mortgage or re-finance, try to find a credit union that is not going to re-sell your mortgage to the likes of JP Morgan or Citi.
Reinstate Glass-Steagle.
I think the small depositors (us) should yank their money out and put it elsewhere. We won't cause a run (DAMN!), but we can at least deprive them of our sheep-like "follow the big dog" behavior.
Pay off your credit cards every month. They'll hate you!
Ah yes, credit default swaps. They are the equivalent of being able to buy insurance on your neighbor's house and collecting when it (accidentally) burns down. How can it still be legal to bet that something you DON'T own will lose value. That's what got us whacked with over $150 billion in AIG losses. Most derivatives should be outlawed but these are the worst of all. At the very least they should have to be traded on exchanges so they are transparent and there should be no government backing for them at all. If the two parties want to gamble then they take the complete risk. And ALL the "too big to fails" should be broken up!
My Senators and John McCain and Jon Kyl. I can't even communicate with Kyl and McCain is either out to senile lunch or has given up every semblance of integrity. My wonder Giffords was shot in the head and I have hardly any way to be heard except at WhiteHouse.gov. And I do that often. But we need some laws for people to use to help the people who have helped us like State Banks and Credit Unions. Please write your Congressional Dems. for me!
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