Some pro forma numbers for you (based on 6/30/08 FDIC data):
Citigroup + Wachovia ------- $688 billion in domestic deposits
JP Morgan + WaMu ---------- $690 billion in domestic deposits
*Bank of America + Merrill - $840 billion in domestic deposits
Total: ------------------------ $2.218 trillion in domestic deposits
Banking Industry Total: ------ $7.029 trillion in domestic deposits
That would be 32% of domestic deposits in the hands of 3 holding companies.
Citigroup + Wachovia -------- $1.295 trillion in total deposits
JP Morgan + WaMu ---------- $1.027 trillion in total deposits
Bank of America + Merrill ---- $1.022 trillion in total deposits
Total: ------------------------ $3.344 trillion in total deposits
Banking Industry Total: ------ $8.573 trillion in total deposits
That would be 39% of total deposits in the hands of 3 holding companies.
Please note that these numbers may be a bit off since they are 3 months old. However, the implication for the banking public is clear: pricing power is building and the consumer is in more trouble than ever before.
* There is an FDIC statute that prohibits an institution from holding more than 10% of domestic deposits via acquisition. The numbers I used included Countrywide Bank, FSB, which does not roll up into the Bank of America holding company. I will research this.
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3 comments:
MK here: Because Countrywide Bank, FSB is a thrift, it does not count against the 10% cap. Quite the loophole.
The relevant statute is the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
The arm's length between the Bank of America holding company and Countrywide Bank, FSB is still in place after the 7/1/08 acquisition closing date.
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