There are twelve commercial banks, listed below, in the United States that on December 31, 2021, had over $250 Billion in total assets. If any of these banks failed due to mismanagement, it is highly likely that the regulators would step in to bail them out and not permit them to fail. [Among other affects, this would avoid wiping out the stockholders. I wish I had that kind of backing when I was running my businesses.]
What are some of the advantages this gives these twelve banks over banks that are not quite as large, say between $10 Billion in total assets to $250 Billion? What are some of the advantages this gives them over commercial banks that are considered community banks of less than $10 Billion in total assets? For either, should these advantages be allowed? If so, what should be done to encourage formation of super-large banks? If not, what should be done to prevent it?
Note that even among the largest twelve, the largest four are significantly larger. Citibank at #4 had $1.67 Trillion in assets. That is roughly three times the levels of the next largest bank. Those four have 41.8% of all commercial bank assets and 41.0% of all commercial bank deposits.
Institution Name Total Assets
(in $000) Total Deposits
(in $000)
JPMORGAN CHASE BANK, NA 3,306,982,000 2,549,631,000
BANK OF AMERICA, NA 2,519,525,000 2,144,377,000
WELLS FARGO BANK, NA 1,779,504,000 1,524,535,000
CITIBANK, NA 1,669,227,000 1,334,924,000
U.S. BANK NA 564,154,604 465,258,475
PNC BANK, NA 551,902,526 463,881,572
TRUIST BANK 528,514,000 428,138,000
GOLDMAN SACHS BANK USA 434,075,000 321,869,000
TD BANK, NA 423,649,262 370,804,425
CAPITAL ONE, NA 381,299,804 316,873,931
THE BANK OF NEW YORK MELLON 356,225,000 311,812,000
STATE STREET BANK AND TRUST COMPANY 311,063,000 260,805,000
Remember, while citations or quotes are required, the responses should be your own words and thoughts. Further, just because something is on the web, that doesnt make it automatically correct and without bias. Know the source of anything you find on the web.