Top Bank holding companies in US by total domestic deposits

The biggest domestic deposit banks on June 30, 2008 as per the data published by FDIC were:

Bank Name	Deposits (Jun 2008) billion $
BoA Corp	701.5
JP Morgan Chase	497.2
Wachovia	422.0
Wells Fargo	293.4
Citigroup	271.3
US Bancorp	127.8
Suntrust Bank	115.6
National City Corp	97.8
RBS	95.3
Toronto-Dominion Bank	89.8

Of these the last two were foreign banks. In all there were 12 foreign banks in the top 50 list.

	Bank Name	Deposits (Jun 2008) billion $
1	RBS Group	95.3
2	Toronto-Dominion Bank	89.8
3	HSBC Holdings	83.0
4	Banco Santander	53.8
5	BNP Paribas	43.9
6	Mitsubishi UFJ	42.0
7	BBVA	39.4
8	Allied Irish Bank	36.5
9	Bank of Montreal	29.1
10	UBS	24.4
11	Royal Bank of Canada	17.8
12 Source:	Deutsche Bank FDIC	15.2

Top 10 banks of the world by market capitalization (April 2009)

Bank	Country	Mkt Cap on Apr 30, 2009
Indl & Coml Bank of China	China	197
China Construction Bank	China	133
JP Morgan Chase	US	124
HSBC	UK	123
Bank of China	China	120
Wells Fargo	US	85
Banco Santander	Spain	73
Mitsubishi UFJ Financial	Japan	63
Goldman Sachs	US	59
Bank of America	US	57

52 Banks in America failed in last one year

According to the data by FDIC(Federal Deposit Insurance Corporation) 52 banks have failed in the last one year, one failure per week on an average. This, once again, highlights the gravity of the crisis, and its impact on the financial institutions across the United States.

Month	No. of banks failure
Apr-09	8
Mar-09	5
Feb-09	10
Jan-09	6
Dec-08	3
Nov-08	5
Oct-08	4
Sep-08	3
Aug-08	3
Jul-08	3
May-08	2
Total since May 2008	52

These banks combined had an asset size of 388 billion USD. The failure had cost about 2 billion dollars to the FDIC Deposit Insurance Fund.

Washington Mutual was the biggest of them all with 307 billion dollar assets in its balance sheet. Before the failure it was the sixth largest bank in US. The panic started in Washington Mutual when about 16 billion dollars were withdrawn from the bank during 10 day bank-run. This was about 9% of the size of the total deposits in the bank. However, the pain was avoided by the sale of the bank to JP Morgan Chase (JPMC). This failure was the largest in the history of America.

The second biggest bank to fail during the year was IndyMac Bank with 32 billion dollars of assets. This was the fourth largest bank failure in American history. The failure cost FDIC about 9 billion USD.

About FDIC
"The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails."

World's top 6 safest banks are still the safest!!

The financial crisis has taken a toll on major banks leaving many top notch banks like America's Citibank, UK's Barclays etc. in never before situation. However, the top 6 safest bank as published by Global Finance Magazine has remained the same during this crisis. Have a look at the top 6 safest banks their ranks in the period 2004-2009.

2009	2008	2006	2004	Bank	Country
1		4	3	KfW Group	Germany
2	1	1	1	Caisse des Dépôts et Consignations	France
3	2	2	5	Bank Nederlandse Gemeenten	Netherlands
4	3	5	6	Landwirtschaftliche Rentenbank	Germany
5	4	3	7	Rabobank	Netherlands
6	5	6	2	Landeskreditbank Baden-Wuerttemberg - Foerderbank	Germany

Global Finance ranks the banks on the basis of their credit rating as provided by the rating agencies Fitch, Moody's, and S&P. These banks have the highest credit rating of AAA from Fitch & S&P, and Aaa from Moody's. The rating corresponds to the maximum credit worthiness and has lowest risk of default.

The size of the balance sheet of these safest banks is however not of the order of the biggest banks like RBS, Deutsche bank, etc.

Bank	Total Assets billion USD
KfW Group	521
Caisse des Dépôts et Consignations	289
Bank Nederlandse Gemeenten	136
Landwirtschaftliche Rentenbank	131
Rabobank	840
Landeskreditbank Baden-Wuerttemberg - Foerderbank	87

A comparison with the biggest banks:

Bank	Total Assets billion USD
Royal Bank of Scotland Group	3,807
Deutsche Bank Group	2,974
BNP Paribas	2,494
Barclays	2,459
HSBC	2,354

The asset data is as on Dec 31, 2007.
Source: Global Finance

When can an Indian bank rank in global top 10?

Today there is only one bank from India in global top 500 companies by their market value (Dec 2008). There are 81 banks and financial services firms in that list with only entry from India in this sector being SBI. In the top 10 banks there are three companies each from U.S. and China, two from Spain, and one each from Japan and U.K. The tenth largest bank is three times more valued than SBI. Despite of being a trillion dollar economy ranking 12th in world, Indian financial sector has failed to produce a big player at world level so far. This is even when there is huge growth potential for the Indian banks because of emerging economy.

The Indian banking industry is highly fragmented. The consolidation is taking place but there is a big limitation due to most of the banks being in public sector with government as their majority shareholder and controller. There are several restrictions on the operations of these state-owned banks. Moreover mergers and acquisition process within these banks is very difficult. The good part is that government is taking steps towards merging small banks with the bigger ones.

We have looked at the possible players from India which can grow up to the global level. The top three players – SBI, ICICI and HDFC are most likely to be the front-runners in this race. To grow to the size of global giants in terms of assets, and revenues will take more than 10 years for these banks if they pursue organic growth. In such a case, if the Indian economy continues to grow at healthy rate and there are not adverse conditions, SBI could come in global top 10 by 2020-2025. For ICICI and HDFC Bank it should take similar amount of time, as being in private sector they can pursue aggressive growth strategies.

M&A could shorten the journey considerably. After the recent merger of HDFC and Centurion Bank of Punjab, HDFC has been able to gain a wider coverage. M&A activities are likely to happen more often in the private sector banks. However, because of very small size of many private sector banks the incentive to acquire them is not much. Consolidation will still occur because of competitive pressure. A merger of two big players is likely to change the direction of the industry. In the absence of such mergers these banks will be prone to acquisition by foreign banks.

So, in any case it is unlikely for an Indian Bank to get on global top 10’s list in next 5-10 years on the fundamental basis. But on the basis of market capitalization it is still achievable in next 5 years as markets are believed to be ahead of and discount the future.

Top Hedge funds 2007 [Alpha Magazine]

The following ranking of the hedge funds by Alpha Magazine was published on May 2007. JP Morgan Asset Management leads the list with Goldman Sachs Asset Management a close second.






Source: Alpha

Top banks in India Market capitalization & sales

The top 40 listed commercial banking organizations in India are as follows (ranked on the basis of market capitalization):

	Market Cap (Billion Rs)	Sales (Billion Rs.)	Market Cap/ Sales
ICICI Bank	1,298	359	3.6
State Bank of India	1,218	531	2.3
HDFC Bank	594	102	5.8
Kotak Mahindra Bank	399	24	16.9
Axis Bank	350	71	4.9
Punjab National Bank	203	153	1.3
Bank of India	174	125	1.4
Bank of Baroda	152	123	1.2
Canara Bank	123	149	0.8
I D B I	118	85	1.4
Centurion Bank of Punjab	103	23	4.4
Union Bank (I)	99	97	1.0
Indian Overseas	97	80	1.2
Indian Bank	79	58	1.4
Yes Bank	70	12	5.8
Oriental Bank	64	66	1.0
Corporation Bank	60	47	1.3
Syndicate Bank	56	79	0.7
Federal Bank	55	25	2.2
Central Bank	54	77	0.7
Allahabad Bank	51	63	0.8
Andhra Bank	50	45	1.1
UCO Bank	46	65	0.7
J & K Bank	40	24	1.7
IndusInd Bank	39	20	1.9
State Bank of Mysore	36	26	1.4
Vijaya Bank	35	38	0.9
Bank of Maharashtra	34	36	0.9
State Bank of Bikaner	32	34	0.9
ING Vysya Bank	31	19	1.6
State Bank of Travancore	30	36	0.8
Karnataka Bank	26	16	1.6
Bank of Rajasthan	24	10	2.3
Development Credit Bank	24	6	4.1
Dena Bank	24	29	0.8
Karur Vysya Bank	21	11	1.9
South India Bank	18	12	1.4
City Union Bank	10	6	1.8
Lakshmi Vilas Bank	7	5	1.3
Dhanalakshmi Bank	3	3	0.9

The market capitalization is as on December and sales figure is trailing twelve months till quarter ending September 2007.

Top 20 Global Commercial & Savings Banks (Fortune)

The global top 20 commercial and saving banks along with their base country as appearing in the Fortune 500 list for 2007 are:

Bank Rank	Financial Institution Name	Country
1	Citigroup	US
2	Crédit Agricole	France
3	Fortis	Belgium/Netherlands
4	Bank of America Corp.	US
5	HSBC Holdings	Britain
6	BNP Paribas	France
7	UBS	Switzerland
8	J.P. Morgan Chase & Co.	US
9	Deutsche Bank	Germany
10	Dexia Group	Belgium
11	Credit Suisse	Switzerland
12	Société Générale	France
13	Royal Bank of Scotland	Britain
14	HBOS	Britain
15	ABN AMRO Holding	Netherlands
16	Santander Central Hispano Group	Spain
17	Barclays	Britain
18	UniCredit Group	Italy
19	Lloyds TSB Group	Britain
20	Mitsubishi UFJ Financial Group	Japan

Britain outscores others in number of banks in top 20 with 25% banks (5 out of 20) based in Britain. The country wise list is:

Country	No. in top Twenty
Britain	5
France	3
US	3
Belgium	2
Netherlands	2
Switzerland	2
Germany	1
Italy	1
Japan	1
Spain	1

Source: Fortune

Top European Financial Institutions / Commercial & Saving Banks

Again the same for Europe, commercial and saving banks in the Fortune global 500 list for the year 2007, is shown below . The list is only of top 15 banks of Europe. These are in overall top 100 Fortune ranking.

Banks	Banks	Overall	Financial Institution Name
Europe	World	World
1	2	18	Crédit Agricole
2	3	20	Fortis
3	5	22	HSBC Holdings
4	6	25	BNP Paribas
5	7	27	UBS
6	9	35	Deutsche Bank
7	10	36	Dexia Group
8	11	47	Credit Suisse
9	12	49	Société Générale
10	13	54	Royal Bank of Scotland
11	14	58	HBOS
12	15	67	ABN AMRO Holding
13	16	75	Santander Central Hispano Group
14	17	83	Barclays
15	18	97	UniCredit Group

The base country of these financial institutions are:

Financial Institution Name	Country
Crédit Agricole	France
Fortis	Belgium/Netherlands
HSBC Holdings	Britain
BNP Paribas	France
UBS	Switzerland
Deutsche Bank	Germany
Dexia Group	Belgium
Credit Suisse	Switzerland
Société Générale	France
Royal Bank of Scotland	Britain
HBOS	Britain
ABN AMRO Holding	Netherlands
Santander Central Hispano Group	Spain
Barclays	Britain
UniCredit Group	Italy

For the entire list of global 500 companies visit Fortune 500.

Needless to say the source of the above data is the Fortune Webpage.

Top Asian Financial Institutions / Commercial & Saving Banks

From the Fortune global 500 list for the year 2007 following are the commercial and saving banks of Asia. The revenues and Profits are for the financial ending 2007. The list was published on July 23, 2007 issue of Fortune Magazine.

Banks	Banks	Overall	Financial Institution Name
Asia	World	World
1	20	118	Mitsubishi UFJ Financial Group
2	26	170	Industrial & Commercial Bank of China
3	28	186	Mizuho Financial Group
4	29	194	Sumitomo Mitsui Financial Group
5	31	215	Bank of China
6	34	230	China Construction Bank
7	39	277	Agricultural Bank of China
8	46	349	Kookmin Bank
9	60	495	State Bank of India

The country to which these institutions belong are as follows:

Asia	Financial Institution Name	Country
Rank
1	Mitsubishi UFJ Financial Group	Japan
2	Industrial & Commercial Bank of China	China
3	Mizuho Financial Group	Japan
4	Sumitomo Mitsui Financial Group	Japan
5	Bank of China	China
6	China Construction Bank	China
7	Agricultural Bank of China	China
8	Kookmin Bank	Korea
9	State Bank of India	India

For the entire list of global 500 companies visit Fortune 500.

Source: Fortune Webpage

List of Commercial and Savings Banks in India

Public Sector Banks

1 Allahabad Bank
2 Andhra Bank
3 Bank of Baroda
4 Bank of India
5 Bank of Maharashtra
6 Canara Bank
7 Central Bank of India
8 Corporation Bank
9 Dena Bank
10 Indian Bank
11 Indian Overseas Bank
12 Oriental Bank of Commerce
13 Punjab & Sind Bank
14 Punjab National Bank
15 State Bank of India (SBI)
15 Syndicate Bank
16 UCO Bank
17 Union Bank of India
18 United Bank of India
19 Vijaya Bank
20 IDBI Ltd

Associates of State Bank of India (SBI)
21 State Bank of Bikaner & Jaipur
22 State Bank of Hyderabad
23 State Bank of Indore
24 State Bank of Mysore
25 State Bank of Patiala
26 State Bank of Saurashtra
27 State Bank of Travancore

Private Sector Banks
Old
1 Bharat Overseas Bank Ltd.
2 City Union Bank Ltd.
3 Development Credit Bank Ltd.
4 Ing Vysya Bank Ltd.
5 The Karnataka Bank Ltd.
6 Lord Krishna Bank Ltd.
7 Nainital Bank Ltd.
8 SBI Commercial & International Bank Ltd.
9 Tamilnad Mercantile Bank Ltd.
10 The Bank of Rajasthan Ltd.
11 The Catholic Syrian Bank Ltd.
12 The Dhanalakshmi Bank Ltd.
13 The Federal Bank Ltd.
14 The Ganesh Bank of Kurundwad Ltd.
15 The Jammu & Kashmir Bank Ltd.
16 The Karur Vysya Bank Ltd.
17 The Lakshmi Vilas Bank Ltd.
18 The Ratnakar Bank Ltd.
19 The Sangli Bank Ltd.
20 The South Indian Bank Ltd.
21 The United Western Bank Ltd.
New
22 Centurion Bank of Punjab Ltd.
23 HDFC Bank Ltd.
24 ICICI Bank Ltd.
25 Indusind Bank Ltd.
26 Kotak Mahindra Bank Ltd.
27 UTI Bank Ltd.
28 YES BANK

Foreign Banks in India
1 ABN Amro Bank N.V.
2 Abu Dhabi Commercial Bank Limited
3 American Express Bank Limited
4 Antwerp Diamond Bank N.V.
5 Arab Bangladesh Bank Limited.
6 Bank Internasional Indonesia
7 Bank of America NA
8 Bank of Bahrain and Kuwait B.S.C.
9 Bank of Ceylon
10 Barclays Bank PLC
11 BNP Paribas
12 Chinatrust Commercial Bank
13 Chohung Bank
14 Citibank N.A.
15 Calyon Bank
16 Deutsche Bank AG
17 JPMorgan Chase Bank
18 Krung Thai Bank Public Company Limited
19 Mashreqbank psc
20 MIZUHO Corporate Bank Ltd.
21 Oman International Bank S.A.O.G.
22 Societe Generale
23 Sonali Bank
24 Standard Chartered Bank
25 State Bank of Mauritius Ltd.
26 The Bank of Nova Scotia
27 The Bank of Tokyo-Mitsubishi UFJ Ltd.
28 The Development Bank of Singapore Ltd.
29 The Hongkong and Shanghai Banking Corporation Ltd.

CEO of top Indian Banks

Mr. K. V. Kamath, MD and CEO, ICICI Bank





Mr. T. S. Bhattacharya, Chairman SBI Bank







Mr. Jagdish Capoor, Chairman HDFC Bank








Mr. Uday Kotak, MD and CEO, Kotak Mahindra Bank








Mr. P.J. Nayak, Chairman and CEO, Axis Bank

Banks’ CEOs and executives ousted due to subprime losses

Citi CEO Charles Prince







Merrill Lynch CEO Stanley O'Neal










UBS AG CEO Peter Wuffli










Bear Stearns Co- President Warren Spector







HSBC head North American business Bobby Mehta








Morgan Stanley Co-president Zoe Cruz

Zoe Cruz exits Morgan Stanley

Morgan Stanley on 29 November declared a number of management changes effective December 1, 2007. Zoe Cruz was shown the way out after 25 years at Morgan Stanley. She was one of the top 10 most powerful business women in 2007 according to Forbes.

Zoe Cruz's role as co-president of Morgan Stanley came to an end because of ongoing subprime crisis which claimed more than 3 billion dollars for the company. Walid A. Chammah and James P. Gorman have been named as co-presidents of the firm.

Morgan Stanley will announce its fourth quarter results around December 17, 2007. Skeptics feel that the ouster of Cruz before the results signals some more writedowns in the results. The New YorkTimes reported that the move represents a sharp reversal for Morgan’s chief executive, John J. Mack, who had supported and cultivated her career.

A report on cnn.money.com quoted Richard Bove( an analyst at Punk Ziegel):

"This must mean that Morgan Stanley is going to report write-downs much greater than previously suggested,"

Chairman and CEO John Mack said:

“Throughout her 25 years of distinguished service, Zoe has always demonstrated a deep commitment to Morgan Stanley. She has helped to build some of our most important and successful businesses and worked tirelessly to strengthen and grow our global franchise. We greatly appreciate the enormous contributions Zoe has made in a wide variety of roles, and we are confident that she will continue to do great things in the years ahead.”

Bloomberg reported that Morgan Stanley has taken bigger trading risks and expanded its mortgage securities business under the leadership of Mack. Mack joined in mid-2005 after former CEO Philip Purcell was forced to resign due to investor’s discontent.

Morgan Stanley is a leading global financial services providing firm. For further information about Morgan Stanley, please visit www.morganstanley.com.

Banks in Japan, Japanese Mega Financial Groups

There are 12 major banks in Japan (not in any order) are:

• Mizuho Bank,
• The Bank of Tokyo-Mitsubishi UFJ,
• Sumitomo Mitsui Banking Corporation,
• Resona Bank,
• Mizuho Corporate Bank,
• Saitama Resona Bank,
• Mitsubishi UFJ Trust and Banking Corporation,
• Mizuho Trust and Banking Company,
• The Chuo Mitsui Trust and Banking Company,
• The Sumitomo Trust and Banking Company,
• Shinsei Bank,
• Aozora Bank

Besides these, there are about 110 regional banks and many shinkin banks(cooperative banks).

The 'Bank of Japan' is the central bank of Japan. It is also a juridical body and is not a government agency or a private corporation.

Japanese banking sector is under consolidation since 1990s. The number of regional banks and shinkin banks has declined gradually while the size of banks has increased. There are three financial groups which are very large and are often known as Mega groups.

Three Japanese Mega Financial Groups (Big Three Megabanks)

1. Mizuho Financial Group
2. Mitsubishi UFJ Financial Group
3. Sumitomo Mitsui Financial Group.

Top 10 banks in India by market capitalization

The top 10 banks in India by market capitalization (on Nov 26, 2007) are:

Rank	Company Name	Type	Market Cap. billion INR	Market Cap. billion USD
1	ICICI Bank	Private	1287	32.4
2	SBI	Public	1180	29.7
3	HDFC Bank	Private	581	14.6
4	Kotak Mahindra	Private	393	9.9
5	Axis Bank	Private	335	8.4
6	PNB	Public	189	4.8
7	Bank of India	Public	165	4.2
8	Bank of Baroda	Public	132	3.3
9	IDBI	Public	118	3.0
10	Canara Bank	Public	110	2.8

Source: http://www.moneycontrol.com Public Sector Banks and Private Sector Banks

INR-Indian National Rupee; USD-United States Dollar

The ‘type’ column shows that the bank is in public sector or private sector.

The logos of the above mentioned banks are:

US Top 10 Commercial Banks and Savings Institutions

The top 10 US banking institutions based on the total deposit amount as on June 30, 2007 are:

Rank	Name	Deposits
1	Bank of America, NA	596
2	JPMorgan Chase Bank, NA	440
3	Wachovia Bank, NA	315
4	Wells Fargo Bank, NA	264
5	Citibank, NA	210
6	Washington Mutual	203
7	SunTrust Banks	114
8	U.S. Bank, NA	113
9	Regions Bank	88
10	Branch Banking and Trust Company	84

The amount of total deposits is in billion US Dollars.

Source: FDIC (Federal Deposit Insurance Corporation)

Official Logos of top banks:

Bank of America




JPMorgan Chase Bank




Wachovia Bank

Wells Fargo Bank

Citibank




Washington Mutual



SunTrust Banks





U.S. Bank





Regions Bank

Branch Banking and Trust Company

Sarbanes-Oxley Act, SOX, Sarbox 2002

Passed in July 2002, the Sarbanes-Oxley Act has reformed the world of accounting by introducing means of ensuring transparency and full disclosure. It is officially known as Public Company Accounting Reform and Investor Protection Act of 2002. The law was enforced after a series of corporate scandals related to accounting practices came to light and shook the world. The accounting loopholes and insufficient law structure that existed before could not prevent some corporate from indulging in unethical activities. Some of the companies which were regarded as one of the world's biggest and most trusted companies like Enron, WorldCom and Tyco were found guilty of hiding or producing false information in accounts. Investors lost millions of dollars and their assurance was taken aback. To bring faith in the system Congress passed this act to improve the accuracy and reliability of corporate disclosures.

The act was named after its sponsors Senator Paul Sarbanes and Michael G. Oxley. This act empowered Securities and Exchange Commission(SEC) to be able to act in the interest of the investors, protect whistleblowers and severely punish the law breakers. SOX made it mandatory for the public companies to make their financial statements more transparent, authentic, and certified by an officer.

Some of the features of SOX are:

• All business records must be retained for at least 5 years.
• CEOs and CFOs should sign on their companies’ financial reports (legally responsible)
• CEO’s and CFO’s compensation and profits must be disclosed.
• More stringent punishment for intentionally misstating financial statements .
• Internal audits and its certification by outside auditors made necessary.
• Audit firms should not have any other engagement with company like consulting.
• SOX 404 compliance: For publicly traded companies- establish internal financial controls and get them audited annually. Costs for this is in millions of dollars for big companies.
  

Excerpts from SOX:

Sec. 802(a)

"Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both."

Sec. 802(a)(1)
"Any accountant who conducts an audit of an issuer of securities to which section 10A(a) of the Securities Exchange Act of 1934 applies, shall maintain all audit or review workpapers for a period of 5 years from the end of the fiscal period in which the audit or review was concluded."

Sec. 802(a)(2)

"The Securities and Exchange Commission shall promulgate, within 180 days, such rules and regulations, as are reasonably necessary, relating to the retention of relevant records such as workpapers, documents that form the basis of an audit or review, memoranda, correspondence, communications, other documents, and records (including electronic records) which are created, sent, or received in connection with an audit or review and contain conclusions, opinions, analyses, or financial data relating to such an audit or review."