Obama Bid to End ‘Too-Big-to-Fail’ Undercut as Banks Grow
Bloomberg noted in a story on April 16, that two years after President Barack Obama vowed to eliminate the danger of financial institutions becoming “too-big- to-fail,” the nation’s largest banks are bigger than they were before the credit crisis.
Bloomberg said, according to the Fed, that five banks – JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs – held $8.5 trillion in assets at the end of 2011, equal to 56% of the U.S. economy.
Five years earlier, before the financial crisis, the largest banks’ assets amounted to 43% of U.S. output. Bloomberg said the Big Five today are about twice as large as they were a decade ago relative to the economy, sparking concern that trouble at a major bank would rock the financial system and force the government to step in as it did during the 2008 crunch.
To read the full text of the Bloomberg story, click here.