US banks are back and bigger than ever

[steve2470]

http://www.guardian.co.uk/business/economics-blog/2012/apr/16/us-banks-back-bigger-than-ever



America's banks are bigger than ever. JP Morgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs have emerged with more firepower than before the financial crisis following Hank Paulson's generous bailouts and the freedom to swallow rivals on the cheap.

According to the Federal Reserve the big five held $8.5 trillion (£5.4tn) in assets at the end of 2011. This enormous hoard, much of it in loans on commercial property or to foreign corporations, is equal to 56% of the US economy. In 2007, ahead of the financial crisis, the largest banks' assets amounted to a still large, but healthier, 43% of US output.

With only a very brief lull in 2008 and 2009 to check their progress, the big five have grown in every other year of the last decade to double in size.

Arguably, along with Washington's unprecedented rescue of Ford, GM and Chrysler, the renaissance of the major banks is behind the US economy's recovery.

[obxhead]

1. With the new JOBS bill signed into law

it's full steam ahead, nuclear style.

The next failure will be even worse for us and the global economy.