Roles Of Banks In The US Economy
Banks play a great role in the US economy. In 2013, the top 20 banks in the US employed more than 1.2 million people. JP Morgan Chase & Co alone employed more than 228,000 people. Billions of taxes are generated by the banking sector every year. Wealth created by the banks strengthen the national purchasing power resulting in a more stable economy. The employee medical insurance schemes ease the pressure on the federal medical scheme such as the Obama Care. The banks fund several community projects, the Bank of North Dakota made history when it provided funds to students in terms of loans and micro businesses credit financing at very sustainable interest rates. Banks also fund several federal and multinational projects. During the 2008 financial crisis, the federal government used financial institutions to initiate the recovery of the economy. The middle-class turn to banks for loans and mortgages when facing financial distress. The majority of Americans deposit their money with the banks for safe keeping.
The 5 Largest Banks In The US
1. JP Morgan Chase &Co.
JP Morgan Chase & Co was formed as a result of a merger of several banking companies in 1996. It is a multinational banking and financial service provider with its headquarters in New York City. Currently, it is the largest bank in the US and is ranked 6th globally in terms of asset base. The bank has an asset base of $2.35 trillion. The company has 94 branches, 214 ATMS and five chase express banking. The bank employs more than 228,000 employees and operates in over 100 countries. It provides financial services to millions of customers, small businesses and many of the world's prominent corporates, institutions, and governments. It provides financial services such as investment banking, markets and investor services, treasury bills and bonds, investment management, private banking, wealth management and brokerage, and commercial banking services.
2. Bank of America (BoA)
The Bank of America was formed on October 17, 1904, by Amadeo Giannini. It was initially known as the Bank of Italy. The bank is an American multinational banking and financial service company with its headquarters in Charlotte, North Carolina. It is ranked second in terms of the asset base behind JP Morgan Chase & Co. It currently boasts of an asset base of $ 2.185 trillion, and a net income of $15.89 billion. It has 5,100 banking outlets, 16,300 ATMs, and more than 150,939 employees. In 2010, the bank was accused by the federal government of defrauding state school and hospitals through illegal transactions of the municipal bond sale. In 2011, the bank conducted one of the largest retrenchment. It downsized its workforce by 36,000 people. In September 2013, the bank fully exited the Chinese sector by selling its stake in the China Construction Bank at an estimated $ 1.5 billion.
3. Wells Fargo
Ranking third among the largest banks in the US is Wells Fargo. The banking institution was founded on March 18, 1852, by Henry Wells and William Fargo. Its headquarters are in San Francisco California. Wells Fargo is the world’s largest bank in terms of market capitalization and the third largest in the US by with an asset base of $1.849 trillion. In 2015 the bank had 265,200 employees. At the end of 2015 it had 8,700 retail branches and 1,300 ATM across 35 countries. In 2008, the bank played a key role in the recovery of the economy after the global financial crisis. The bank received $25 billion of the recovery fund. In 2009, the bank was ranked first among banks and insurance firms for its role in environmental conservation. The company is well known for supporting environmental programs, including funding 185 solar photovoltaic projects. The bank has been charged for severally for economic crimes. In 2009, the bank was charged with steering African Americans into committing to high-cost loans and in 2010, the bank was charged for failing to report money laundering by suspected peddlers.
Citigroup was founded on June 16, 1812. Citibank is the consumer division of the financial service multinational Citigroup with its headquarters in Manhattan, New York. In North America, Citibank has 983 branches. It provides standard banking transactions, market insurance, credit cards and online division which claims 15million users. It started ATM services in the 1970s and had 239,000 employees in 2015 and total asset base of $1.801 trillion. The bank experienced massive losses during the financial crisis and had to be rescued by the federal government. As of June 2012, the bank had the largest cash reserve of all the commercial banks in the US with $420 billion in surplus. In 2012, the bank failed a stress test used to determine the ability of financial institutions to withstand a financial crisis.
5. Goldman Sachs Group
Goldman Sachs Group was founded in 1869 by Marcus Goldman and Samuel Sachs. It has its headquarters in New York. The firm’s first investment was pioneering the use of commercial papers for investors and entrepreneurs. The company is one of the few financial institutions that made a profit during the financial crisis. In 2013, the bank collaborated with Deutsche Bank and led Apple’s largest corporate-bond deal.In 2015, the bank acquired General Electric Company. As at 2016, the bank had nearly 35,000 employees; its total assets amounted to $861 billion. The company operates in Asia, Europe, and the Americas.
Below, is the list of the 20 largest banks in the US
The Largest Banks In The US
|Rank||Bank name||Location||Total assets (US$ Billion)|
|1||J.P.Morgan Chase & Co||New York City, NY||$2,423.8|
|2||Bank of America||Charlotte, North Carolina||$1,685.5|
|3||Wells Fargo||San Francisco, California||$1,349.2|
|4||Citigroup||New York City, NY||$1,101.0|
|5||Goldman Sachs Group||New York City, NY||$878.0|
|6||Morgan Stanley||New York City, NY||$807.5|
|7||U.S. Bancorp||Minneapolis, Minnesota||$428.6|
|8||Bank of New York Mellon||New York City, NY||$372.9|
|9||PNC Financial Services||Pittsburgh, Pennsylvania||$361.0|
|10||Capital One||McLean, Virginia||$330.3|
|11||HSBC North America Holdings||New York City, NY||$289.1|
|12||TD Group US Holding||Cherry Hill, New Jersey||$274.4|
|13||State Street Corporation||Boston, Massachusetts||$243.7|
|14||BB&T Corporation||Winston-Salem, North Carolina||$212.4|
|15||SunTrust Banks||Atlanta, Georgia||$194.2|
|16||Charles Schwab Corporation||San Francisco, California||$191.0|
|17||Atlantic Bank||New York City, NY||$158.8|
|18||Ally Financial||Detroit, Michigan||$156.5|
|19||Fifth Third Bank||Cincinnati, Ohio||$142.4|
|20||United Services Automobile Assoc.||San Antonio, Texas||$142.1|