Monday, January 19, 2009

HOW THE 4 SUPER-BANKS GOT SO BIG...

compiled by Rex Frankel, 1/19/2009
BANK OF AMERICA:
4800 branches, 15,000 ATM’s
Bought During the Bush Years: FleetBoston, MBNA, U.S. Trust, LaSalle Bank, Countrywide, Merrill Lynch
ACQUISITIONS:
Fed law change in 1956 forced spin off of Transamerica Insurance co.
Nevada N & L,
Harbor Security,
Montgomery Securities,
Robertson and Stephens,
and used to own Charles Schwab investment adviser co.-sold back to founder in 1986
1983-Seafirst
1986-Orbanco
1986-Diablo
1987-Rainier, but sold off after Security Pacific purchase due to monopoly concerns
1988-Hibernia
1989-Nevada First
1990-Gibraltar
1990-Mercury savings
1990-Mera Bank
1990-Western Savings
1990-Ben Franklin Federal Savings
1991-Southwest
1991-Security Pacific
1991-Valley Bank of Nevada
1994-Continental Illinois
1994-Arbor National
1996-Boatmen’s Bancshares
1997-Barnett Banks
1998-Nations Bank bought BofA, kept BofA name
2003-FleetBoston
2005-buys MBNA-credit card issuer
11/2006--buys U.S. Trust, a money manager, from Charles Schwab for $3.3 billion
4/2007 buys La Salle Bank Corp. From ABN Amro for $21 bil.
2007-buys Countrywide Financial
2008- buys Merrill Lynch stock brokerage

CITIGROUP:
Bought During the Bush Years: CalFed, Banamex
ACQUISITIONS:
1988- Bank of Arizona
Early 1990’s—Travelers buys Shearson Lehman Brothers, merging it into Smith Barney
1997-Salomon Brothers joins Traveler’s Group
1998-merged with Traveler’s Group brokerage and insurance co.
2000-Associates First Capital Corp
2002-CalFed/Cenfed/Glendale Federal/First Nationwide
2002-Spun off Traveler’s insurance, keeping brokerage and financial service divisions
2009-Citi to put Smith Barney in joint venture with Morgan Stanley (keeping 49% stake)
Grupo Financial Banamex, (#1 in Mexico)
Diner’s Club,
Carte Blanche credit card
Franklin Fund

WELLS FARGO

Bought During the Bush Years: Wachovia Bank
ACQUISITIONS:
1986-Crocker-Citizens purchased from Midland Bank of UK
1987-Allied Bancshares
1988-Barclays Bank of California
1989-American National Bank
1989-Valley National Bank
1990-Great American Savings branches in Calif
1994-Bank of A. Levy
1996- First Interstate
1998-Norwest-actually, Norwest bought Wells Fargo and kept the Wells name,
1/2007-buys Placer Sierra Bancshares-based in Sacramento area-50 branches
5/2007-- buys Greater Bay Bancorp (SF bay area) for $1.5 bil, has 41 branches.
2008-buys Wachovia, which had taken over First Union, Corestates, First Atlanta, Jefferson National, Central Fidelity, 1st United Bancorp, American Bancshares, Republic Security, Southtrust, Prudential Financial, Metropolitan West Securities, Westcorp, Golden West Financial, World Savings Bank, A.G. Edwards
Homefed Bank,

J.P. MORGAN CHASE AND COMPANY
Bought During the Bush Years: BankOne, Bear Stearns brokerage, Washington Mutual
ACQUISITIONS:
1986-Texas Commerce Bancshares bought by Chemical Bank
1991-Manufacturer’s Hanover bought by Chemical Bank
1994-Margaretten Financial
1995-Chemical Bank buys Chase Manhattan, renamed Chase
1999-Hambrecht & Quist
2000-Chase bought J.P. Morgan and Co.
2004-Bank One/First Chicago/City National
2006-Collegiate Funding Services
2008--bought Bear Stearns stock brokerage
Chase Mellon Shareholder Services???,
--2008, bought WASHINGTON MUTUAL
ACQUISITIONS:
1986-Leucadia National
1986-Southern Home Savings
1987-First Commercial Savings
1987-Bowery Savings
1997-Great Western Savings
1997-Coast Federal
1998-Home Savings
2005-Providian National Bank
American Savings,
some branches of Western Federal and Household Bank
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SOME BANKING STATS:
market share of banks in L.A. area


there is $7 trillion in deposits in FDIC insured institutions

total deposits of bank holding cos. As of 6/30/2008
BANK OF AMERICA CORPORATION 6,146 branches $701 billion
JPMORGAN CHASE & CO. 3,195 branches $497 billion
WELLS FARGO & COMPANY/WACHOVIA 6741 branches $715 billion
CITIGROUP INC. 1,079 branches $271 billion
Which totals $2.184 trillion or 31% of all deposits are in the top 4
(the FDIC does not list deposits for WaMu, so most likely they are counted in JPM’s total)

at time of WaMu takeover by JPMorgan Chase, WaMu had $188 billion in deposits

number of offices in L.A. MSA—top 4 have 1142 branches out of 2481 total in L.A. metro area, or 46% of branch offices are the top 4 banks, BofA, WaMu, Wells-Wachovia and Citibank (JP Morgan not in the list as no presence in L.A.)

Temasek Holdings, owned by the government of Singapore, owned Merrill Lynch. When ML was sold to BofA, Temasek and the government of Singapore become a big owner of BofA. (America’s largest bank!)

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