Citi + Bank of America Losses = Rest of U.S. Banks Value

By my calculation, the two largest U.S. banks, Citi (C) and Bank of America (C), have over the last year lost roughly as much in market capitalization as is the current value of the other six U.S. banks combined.

To be specific, Citi and BofA have together lost $296-billion in market capitalization over the last year, while JPMorgan (JPM), Wells Fargo (WFC), Bank of New York (BK), Wachovia (WB), WaMu (WM), and U.S. Bancorp (USB) currently have a remaining combined capitalization of $283-billion. Staggering stuff.

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As a related aside, and just in case anyone thinks the U.S. is alone in its banks seeing major share price declines, here is a 12-month graph of the share price performance of the 10 largest banks in the world (according to Euromoney in 2007):

Comments

[wisdomous:]

what's your conclusion? market caps go up and down like a roller coaster.

2008 Jul 15 04:23 PM

[akj01:]

a meaningless remark: the bigger you are and the more diversified you are in a bad market, you will lose on all fronts.

2008 Jul 15 05:26 PM

[Hoping Justice:]

BAC is full of incompetents and can't manage their own people. Ken Lewis can't even respond to simple questions from the public during the recent town hall meeting

see: www.bankofamericasux.c.../

People are pulling out the deposits and going to reputable brokerages that pay better interest rates. I talked with many people and everyone knows someone that had to deal with BofA screw ups.

Position: short

2008 Jul 15 05:53 PM

[Eagle-Chief:]

Just goes to show you how damned overvalued these companies are. People buying these companies were paying greatly hyperinflated prices for them. Maybe the prices they are selling for now are more accurate of their true values, or perhaps they are still overinflated.

2008 Jul 16 06:54 PM

[morgan77:]

How will the earnings report affect the financials on Monday?
www.greenfaucet.com/tr...

2008 Jul 17 04:57 PM

[Jason Rines...:]

I like Hoping Justice's point: Bad management. Bad management created marked-to-market, credit swap and deravatives vaporware and the monolines turned a blind eye. Same with government. As investors, don't we pay close attention to who is running the ship?

2008 Jul 17 06:16 PM