Posted by: coastcontact | June 22, 2012

Banks are Too Big To Fail! Is it true?

“SAN FRANCISCO(MarketWatch) — Moody’s Investors Service downgraded the ratings late Thursday of 15 financial firms with global capital-markets operations from one to three notches.”  The list included Bank of America Corp. BAC, Citigroup Inc. C, HSBC Holdings PLC.  These three are on the list of America’s largest banks.

Largest banks and thrifts in US by total deposits

Company                       City, State            Deposits in Billions of Dollars

JPMorgan Chase & Co.                            New York, NY            1,127.8

Bank of America Corp.                            Charlotte, NC              1,033.0

Citigroup Inc.                                          New York, NY                 865.9

Wells Fargo & Co.                                  San Francisco, CA           920.1

U.S. Bancorp                                          Minneapolis, MN             230.9

Capital One Financial Corp.                 McLean, VA                     211.2

Bank of New York Mellon Corp.         New York, NY                    219.1

PNC Financial Services Group Inc.     Pittsburgh, PA                    209.2

HSBC North America Holdings Inc.      New York, NY                   122.6

State Street Corp.                                Boston, MA                        157.3

This identical data was printed in Forbes and The WSJ.

Yes, you read it correctly, JPMorgan Chase & Co. has deposits of One Trillion, onehundred twenty eight Billion point eight dollars.

Moody’s says “All the banks affected by these rating actions have significant exposure to the volatility and risks inherent in the capital markets business, which have led many to fail or avoid it only through the receipt of support from a third party.”  We can all conclude that the third party is a government or government sponsored entity.

Banks receive aid but the aid to small business and home owners is minimal.  If it isn’t called welfare, what do you call government support for banks?


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