One of the major concerns supposedly addressed in the Dodd-Frank Act was that many banks had become “too-big-to-fail” and needed a taxpayer funded bailout in the heat of the financial crisis in 2008. Nearly two years since it was signed into law, questions and concerns still exist, particularly as they relate to the Volcker rule and trading losses at banks such as JPMorgan.
We wanted to see how banks actually are doing right now. Here are the 10 largest U.S. banks by assets in 2012 with a comparison to their size in 2008. You be the judge — did Dodd-Frank fix too-big-to-fail?
10. State Street Corporation
Founded in 1792, State Street Bank provides securities services to institutional investors as a custodian bank and State Street Global Advisors provides investment management services to mutual funds and other asset managers
2012: $187.609 billion
2008: $173.631 billion
TARP Bailout: $2 billion
Headquarters: Boston
9. PNC Financial Group
Originally founded as the Pittsburgh Trust and Savings Company in 1852, PNC Financial Group operates in a number of different arenas, including retail, corporate and institutional banking, mortgage servicing, a 21.7% stake in BlackRock and owns the naming rights to PNC Park, home of the Pittsburgh Pirates.
2012: $296.119 billion
2008: $291.081 billion
TARP Bailout: $8 billion
Headquarters: Pittsburgh
8. Bank of New York Mellon Corp.
Formed in July 2007 with the merger of The Bank of New York and Mellon Financial Corporation, the combined entity can trace its origins to the establishment of the Bank of New York in 1784 by Alexander Hamilton. It holds the title of being the oldest banking corporation in the United States.
2012: $300.197 billion
2008: $237.512 billion
TARP Bailout: $3 billion
Headquarters: New York City
7. U.S. Bancorp
U.S. Bancorp, the parent company of U.S. Bank, was formed in the 1990s from the mergers of many smaller banks. From 1988, more than 50 banks have merged with U.S. Bancorp. U.S. Bank helped finance Charles Lindbergh’s historic flight across the Atlantic.
2012: $340.762 billion
2008: $265.912 billion
TARP Bailout: $7 billion
Headquarters: Minneapolis
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6. Morgan Stanley
Morgan Stanley was formed in 1935 as an investment bank in response to the Glass-Steagall Act, which required the splitting of commercial and investment banking; it previously was a part of J.P. Morgan & Co.
2012: $781.030 billion 2008: $658.812 billion TARP Bailout: $10 billion Headquarters: New York City
5. Goldman Sachs
Founded in 1869, a list of former Goldman Sachs employees reads like a virtual who’s-who of finance. Notable alumni include former MF Global CEO Jon Corzine, former Treasury Secretaries Robert Rubin and Henry Paulson and Governor of the European Central Bank Mario Draghi.
2012: $951.217 billion
2008: $884.547 billion
TARP Bailout: $10 billion
Headquarters: New York City
4. Wells Fargo
Wells Fargo is the end result of a number of mergers since 1998, although the company can trace 150 years of history. In 2007 it was the only bank in the United States to be rated AAA by S&P, although its rating has since been lowered to AA- in light of the financial crisis.
2012: $1,333.799 billion
2008: $1,309.639 billion
TARP Bailout: $25 billion
Headquarters: San Francisco
3. Citigroup
The year 2012 marks Citigroup’s 200th anniversary. At its height Citigroup was the largest company and bank in the world by total assets with 357,000 employees until the global financial crisis of 2008. Today it is ranked 10th in size by composite index.
2012: $1,944.423 billion
2008: $1,938.470 billion
TARP Bailout: $45 billion
Headquarters: New York City
2. Bank of America
As of 2010, Bank of America was the third-largest non-oil company in the U.S. (after Walmart and General Electric). It has a working relationship with 99% of the U.S. Fortune 500 companies. The bank's 2008 acquisition of Merrill Lynch made it the world's largest wealth management corporation.
2012: $2,180.055 billion
2008: $1,817.943 billion
TARP Bailout: $45 billion
Headquarters: Charlotte, NC
1. JPMorgan Chase
JPMorgan Chase was founded in 2000 when Chase Manhattan Corporation merged with J.P. Morgan & Co. When the Glass-Steagall Act was passed in the 1930s, J.P. Morgan & Co. opted to operate as a commercial bank, because at the time commercial lending was perceived as more profitable and prestigious.
2012: $2,320.330 billion
2008: $2,175.052 billion
TARP Bailout: $25 billion
Headquarters: New York City
