This is not a surprise to me as I was told by a financial analyst in the ’90’s that there would be four banks that would control the GDP in this country. Wells Fargo and Bank of America were the ones mentioned.
The wreckage of the financial crisis led to pages upon pages of financial reform aimed at ending the era of Too Big To Fail, but six years after the banking system blew up the five biggest firms control 44% of the $15.3 trillion in assets held by U.S. banks according to data compiledby SNL Financial. Those banks — JPMorgan Chase JPM -0.42%, Bank of America BAC -0.67%, Wells Fargo WFC +0.11%, Citigroup C -0.31% and US Bancorp USB +0.23% — collectively held $6.8 trillion in assets as of Sept. 30.
JPMorgan holds just over $2 trillion in assets, or 13.1% of the industry’s total, followed by BofA at $1.5 trillion (9.9%), Wells Fargo just under $1.5 trillion (9.7%) and Citi at $1.4 trillion (9%), before a substantial dropoff to US Bank at $387 billion (2.5%).
SNL’s analysis, which considered only commercial banks, notes the drastic increase in banking industry concentration over the past few decades. In 1990, the five biggest U.S. banks held less than 10% of industry assets, but that figure has steadily marched higher ever since, pausing only for the year from 1999 to 2000. Today, Wells Fargo, the third biggest bank, controls basically the same percentage of assets the entire top five did in 1990.