This big four came about thanks to the Federal Reserve System (FRS), which plays the role of the central bank in the United States. FRS was formed in 1913 due to the panic and chaos that prevailed then in the financial system of America. Among other functions, it is designed to stabilize the country's financial market and regulate the activities of financial organizations. Beginning in the 1990s, bank mergers and takeovers of small financial companies by large ones took place everywhere with the support of FRS, although during crises statements were made about the need for disaggregation, but all these were just words. As a result, over the past 28 years, instead of 40 banks, there have become 4 largest monopolists, on whose deposits almost half of all deposits of America are stored.
What banks entered the big four of the USA?
JPMorganChase & Co of JPMorgan . The head office of this bank is located in New York, its assets at the beginning of 2018 amounted to more than $ 2.6 billion. Formed by the merger of several large financial companies in 2000. Currently engaged in investment activities, consumer and commercial loans, public and corporate banking. It is one of the largest world companies (one of the six largest according to Forbes). Outside the United States, JP Morgan Bank International ltd, a member of the corporation, has regional offices in most developed countries of the world. JPMorgan Chase itself provides services only in America.
GoodOf America Bank . Its head office is located in Charlotte, North Carolina. At the beginning of 2018, assets amounted to more than $ 2.3 billion. This largest financial monopolist was founded in 1928. Now it is one of the 25 largest global companies. In addition to the United States, it operates in more than 30 countries around the world. Different departments of the bank are engaged in different types of activities: consumer banking, global asset management, servicing large corporations and enterprises, mortgage lending, and trading on exchanges. In Russia, this monopolist is represented by a subsidiary of Merrill Lynch Securities, but there is also a representative office of the bank itself.
Inc of Citigroup . This is a bank with headquarters in New York and assets of more than $ 1.92 billion. This name was given to this financial conglomerate after the merger of Travelers Group and Citicorp. At the moment, it has branches in almost all countries; back in 2010, its customers were residents of almost 140 countries. This company did not bypass its attention to Russia either. The well-known Citibank is a subsidiary of Citigroup Inc.
WellsFargoONLY Fargo & Co at Wells . The company is headquartered in San Francisco, California, but its headquarters are in South Dakota, Sioux Falls. The size of the assets is slightly smaller than that of Citigroup Inc, about $ 1.91 billion. It focuses primarily on financial and insurance services in the United States and Canada. In 2015, it was recognized as the largest bank in the world by market capitalization ($ 300 billion).
After the 2008 crisis, FRS began to tightly regulate cash flows . The key rate fell to 0.25% and practically did not increase until 2015. This led to the fact that new banks generally ceased to appear, since for them to lend to businesses with such a low margin - like death. In 2015, a gradual increase in the key rate began, today it is 2.25%. But it is unlikely that anyone will be able to get closer to the four monopolists in the banking sector of America in the coming years.