Seeking Alpha

Largest lenders cementing their market share

  • Despite constant concerns about banks that are "too big too fail," the amount of assets that the U.S.'s five largest lenders control has grown to 44.2% of the total in the sector from 43.5% in 2012, a report from provider SNL Financial shows.
  • In 2007, the figure was 38.4% and in 1990 it was just 9.67%.
  • The banking operations of JPMorgan (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC) and U.S. Bancorp (USB) held $6.46T in assets as of Q3 2013.
  • The easing of regulation, which gained momentum in the 1990s, encouraged consolidation in the sector, as did the government pushing stronger banks to buy those that were about to collapse - or did collapse - because of the financial crisis in 2008.
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Comments (12)
  • Brian McMorris
    , contributor
    Comments (1098) | Send Message
     
    And why again does the Justice Dept (anti-trust), Congress and President permit this concentration of financial power in the hands of a few? Could there be some back room dealings? This is dangerous and the big banks must be broken up. If it can be done to AT&T and Standard Oil, it can be done to Citi and JP Morgan
    5 Jan 2014, 09:50 AM Reply Like
  • Noquiche
    , contributor
    Comments (228) | Send Message
     
    The stated numbers are misleading...Those banks are international institutions whose assets include international holdings. They also include assets held in investment accounts both domestically and internationally. ATT and Standard Oil were individual companies that had market shares higher than the listed banks have combined which is why they were considered for anti-trust violations. The banking market is far more segmented than most product markets. The issue is not about size..it is about risk
    5 Jan 2014, 03:16 PM Reply Like
  • Jason B
    , contributor
    Comments (435) | Send Message
     
    Citi is barely a US company- majority is International. Save your ire for a real Liberal cause. Your government is doing plenty to reach your Socialized Utopia.
    6 Jan 2014, 03:49 PM Reply Like
  • ECapo
    , contributor
    Comments (680) | Send Message
     
    All one has to do is look back at the 2009 crisis...when they called all the major banks in...there is the answer. Today they go after them...later they will call them for help...it is back and forth....
    5 Jan 2014, 09:52 AM Reply Like
  • Ruffdog
    , contributor
    Comments (2265) | Send Message
     
    ya, I cannot wait for Obama to call Jamie Diamond (sp?) for help again!
    5 Jan 2014, 10:17 AM Reply Like
  • philipmax
    , contributor
    Comments (341) | Send Message
     
    I don't get it.
    The treasury and FDIC promote TBTF institutions by arranging shot-gun marriages to weak institutions. Then, the Treasury and the FDIC, as well as, all politician clammer to dismantle these gargantuan institutions.
    Sounds like hollow talk to cover the crime. Eventually, we'll have five large banks controlling the entire industry. Like all large, self aggrandizing, institution (i.e. utilities,autos,airlines etc.), the big boyz get the government to do the dirty job of consolidation of power by muscling smaller competitors out of business. Good luck to us all.
    5 Jan 2014, 11:29 AM Reply Like
  • susanprieve
    , contributor
    Comments (5) | Send Message
     
    read The Creature From Jekyll Island- it's all explained in a most chilling fashion....
    5 Jan 2014, 12:48 PM Reply Like
  • La Rue
    , contributor
    Comments (894) | Send Message
     
    Anyone seen Jon Corzine ???
    5 Jan 2014, 02:17 PM Reply Like
  • ECapo
    , contributor
    Comments (680) | Send Message
     
    La Rue you have mentioned a good example...if anyone should have been sent to prison ...it should have been him..but this did not happen..why...The Obama Administration praised him and as we know he was a heavy contributor to the election of Obama...as they say....money buys just about anything and those in power rule...but like Rome...they will fall...and even Corzine will have his day also...Big Banks will continue to rule in the future..they have the money....and on the bail outs remember how they were forced to take money...at % and lend it out at 3%..I would take all the money they gave me..
    6 Jan 2014, 11:29 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (10013) | Send Message
     
    Democrats....Republica...

     

    A very, VERY close knit family.
    5 Jan 2014, 05:35 PM Reply Like
  • ote
    , contributor
    Comments (321) | Send Message
     
    Canada has essentially 5 large banks. No problems like in the USA. Big is not necessarily the problem.
    5 Jan 2014, 08:33 PM Reply Like
  • philipmax
    , contributor
    Comments (341) | Send Message
     
    Yes, kudos to Canada, it does have 5 large well capitalized banks. It also has only 20 million people, and a relatively small fraction of the size of the US economy.
    6 Jan 2014, 08:27 AM Reply Like
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