Why is the amount of so called assets more than the entire amount of the world’s GDP? These questions and more you should know.
With these assets being on the books how many are off the books? Shadow banking assets make up more of banking industry than what is currently shown on the books.
You decide if Glass-Steagall Act of 1932 needs to be reinstated.
July 2010
JEL classification: G20, G28, G01
Abstract
“The rapid growth of the market-based financial system since the mid-1980s changed the nature
of financial intermediation in the United States profoundly. Within the market-based financial
system, “shadow banks” are particularly important institutions. Shadow banks are financial
intermediaries that conduct maturity, credit, and liquidity transformation without access to
central bank liquidity or public sector credit guarantees. Examples of shadow banks include
finance companies, asset-backed commercial paper (ABCP) conduits, limited-purpose finance
companies, structured investment vehicles, credit hedge funds, money market mutual funds,
securities lenders, and government-sponsored enterprises.”
Shadow banking system From Wikipedia, the free encyclopedia
The shadow banking system or the shadow financial system consists of non-depository banks and other financial entities (e.g., investment banks, hedge funds, money market funds and insurers) that grew in size dramatically after the year 2000 and play an increasingly critical role in lending businesses the money necessary to operate. By June 2008, the U.S. shadow banking system was approximately the same size as the U.S. traditional depository banking system. The equivalent of a bank run occurred within the shadow banking system during 2007-2008, when investors stopped providing funds to (or through) many entities in the system. Disruption in the shadow banking system is a key component of the ongoing subprime mortgage crisis.
Top Banks in The United States
| 1 | BANK OF AMERICA CORPORATION (1073757) | $2,264,435,837 | ||
| 2 | JPMORGAN CHASE & CO. (1039502) | NEW YORK, NY | $2,246,764,000 | |
| 3 | CITIGROUP INC. (1951350) | NEW YORK, NY | $1,956,626,000 | |
| 4 | WELLS FARGO & COMPANY (1120754) | SAN FRANCISCO, CA | $1,259,734,000 | |
| 5 | GOLDMAN SACHS GROUP, INC., THE (2380443) | NEW YORK, NY | $937,192,000 | |
| 6 | MORGAN STANLEY (2162966) | NEW YORK, NY | $830,747,000 | |
| 7 | METLIFE, INC. (2945824) | NEW YORK, NY | $771,482,771 | |
| 8 | TAUNUS CORPORATION (2816906) | NEW YORK, NY | $412,229,000 | |
| 9 | HSBC NORTH AMERICA HOLDINGS INC. (3232316) | NEW YORK, NY | $366,343,136 | |
| 10 | U.S. BANCORP (1119794 |
Top Banks in the World by Bankersalmanac.com
| BNP Paribas SA , Paris , France | 2,675,627 |
| Deutsche Bank AG , Frankfurt am Main , Germany | 2,551,727 |
| Barclays Bank PLC , London , UK | 2,326,004 |
| Crédit Agricole SA , Paris , France | 2,133,810 |
| Industrial & Commercial Bank of China Limited | 2,043,861 |
| The Royal Bank of Scotland plc , Edinburgh , UK | 2,040,790 |
| The Bank of Tokyo-Mitsubishi UFJ Ltd , Tokyo , Japan | 1,644,768 |
| China Construction Bank Corporation , Beijing , China | 1,641,683 |
| JPMorgan Chase Bank National Association , New York, USA | 1,631,621 |
