JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup and Wells Fargo Earned $51 Billion, The Other 980 Banks Lost Money In Aggregate
Posted By thestatedtruth.com on June 4, 2010
Forbes.com
Street Talk With Bob Lenzner
Focus hard on this shocking Wall Street reality: The top six bank holding companies earned an aggregate of $51 billion in pretax income in 2009. We’re talking about JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup and Wells Fargo.
All of this pretax income can be attributed to their trading revenues of $59.7 billion. The proprietary trading operations of an oligopoly of banks, saved from disaster by Uncle Sam’s largesse and subsidized with cheap money from the central bank, was the single driving force behind the restoration of their fortunes and the renewed surge in their stock prices.
For those willing to go long when the outlook was the bleakest, they’ve banked a double in JPMorgan Chase ( JPM – news – people ), scored a quadruple in Citigroup ( C – news – people ) and nearly a quintuple in BofA.
Some of the other 980 bank holding companies–like Bank of New York Mellon ( BK – news – people ), PNC Financial Services, U.S. Bancorp ( USB – news – people ) and M&T Bank ( MTB – news – people )–lost an aggregate of $19 billion for the 2009 year. Bank of New York Mellon had the seventh-largest trading revenue–it was just 1.6% of the total. By comparison, Goldman Sachs ( GS – news – people ) had 36.2%, Bank of America ( BAC – news – people ) 18.8%, JPMorgan Chase 15.4%, Morgan Stanley ( MS – news – people ) 11.3%, Citigroup 6.9% and Wells Fargo ( WFC – news – people ) 4.2%.
Trading Revenue at U.S. Bank Holding Companies in 2009
All data from December 2009 FR Y-9C filings. Dollar amounts in millions.
| Â | Â | Total Assets, Dec. 31, 2009 | Trading Revenue | As a Percentage of Industry Trading Revenue |
| 1 | Goldman Sachs Group | $849,278 | $23,234 | 36.2% |
| 2 | Bank of America | 2,224,539 | 12,067 | 18.8% |
| 3 | JPMorgan Chase | 2,031,989 | 9,870 | 15.4%% |
| 4 | Morgan Stanley | 771,462 | 7,279 | 11.3% |
| 5 | Citigroup | 1,856,646 | 4,448 | 6.9% |
| 6 | Wells Fargo | 1,243,646 | 2,674 | 4.2% |
| 7 | Bank of New York Mellon | 212,336 | 1,032 | 1.6% |
| 8 | State Street | 156,756 | 598 | 0.9% |
| 9 | Northern Trust | 82,142 | 508 | 0.8% |
| 10 | MetLife | 539,314 | 361 | 0.6% |
| 11 | GMAC | 172,313 | 173 | 0.3% |
| 12 | PNC Financial Services Group | 269,922 | 170 | 0.3% |
| 13 | U.S. Bancorp | 281,176 | 163 | 0.3% |
| 14 | Fifth Third Bancorp | 113,380 | 125 | 0.2% |
| 15 | SunTrust Banks | 174,166 | 100 | 0.2% |
| Â | Sum: Top 15 Banks by Trading Revenue | Â | 62,803 | 97.8% |
| Â | Remaining Bank Holding Companies | Â | 1,399 | 2.2% |
| Â | Total: All Bank Holding Companies (986 banks) | Â | 64,202 | 100.0% |
Even more fascinating for public policy reasons, Goldman Sachs’ trading revenue was 119% of its own pretax income. Bank of America’s trading was 262.8% of its pretax income and Morgan Stanley’s trading was an incredible 849.4% of its pretax income.
Goldman Sachs, Bank of America and JPMorgan Chase did not lose money during any single trading session of the 2010 first quarter. This astonishing performance underscores the casino the oligopoly has become. It bears testament to the payoff from the Wall Street bailout of 2008, which resulted in the elimination of competition and the concurrent strengthening of the few giants left standing.
More at:Â http://www.forbes.com/2010/06/03/goldman-sachs-citigroup-markets-lenzner-morgan-stanley.html
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