Markets get Crushed, Big Banks Follow Suit

September 22, 2011 3 Comments »

Wall Street’s taking another beating today, with the the Dow looking to close down around 4.20 percent.

The roller coaster highs and lows we’ve been seeing appear to be here to stay, and whenever the markets get crushed the major publicly traded banks at least follow suit with equal losses – and in some cases much more.

Current Status of Publicly Trade Banks:

1) Citigroup Inc: (NYSE: C) – Down roughly 7.50%.

With a market cap of $70 billion (and almost twice that amount earlier in 2011) Citigroup is still one of the largest banking institutions in the United States. Thanks to the repeal of the Glass-Steagall Act of 1998, which allowed consumer banks to merge with investment banks and insurance institutions, Citigroup rose to mammoth heights almost over night in 1998. With their current market cap of $70 billion they are just a small fraction of their original size – once controlling $700 billion in assets.

2) Bank of America (NYSE: BAC) Down roughly 5.60%

Even with the help of a $5 billion injection from Warren Buffet at the end of last month, Bank of America still encountered substantial losses today. In fact, they lost more than half of what Berkshire invested in market cap losses from today’s trading alone. And even though Warren negotiated a nice little 6% annual dividend for his holding company, it seems gains from an increase in stock price wont be encountered anytime soon.

3) JPMorgan Chase & CO (NYSE: JPM) Down roughly 5.60%

Looks like JPMorgan Chase will end up with an almost identical percentage loss as Bank of America (although they have almost twice the market cap). That’s a big hit for what Forbes once called the “world’s largest publicly traded company.” JPMorgan Chase controls roughly $2 trillion in assets.

4) Wells Fargo (NYSE: WFC) Down roughly 3.50%

Considering the circumstances, Wells Fargo actually made out alright.

5) US Bancorp (NYSE: USB) Down roughly 1.31%

US Bank is today’s big winner! Down just 1.31% it managed to only lose a half of a billion dollars in market cap. Congrats.

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  • BankVibe

    Major buy back in the last 30 minutes of trading or so…Dow only down 3.51% on the day.

  • Chris

    Buffet always gets to negotiate special terms for his investments. He didn’t get that rich just playing the market like normal folks.

  • BankVibe

    @ Chris, he does have a leg up on us ‘normy’s’ but it’s looking like the BofA deal might not bring him the returns he was hoping for…