7 Burst results for "Chase Bank America Wells Fargo"

"chase bank america wells fargo" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

02:54 min | 8 months ago

"chase bank america wells fargo" Discussed on Banking Transformed with Jim Marous

"If you've got a niche, you know your Cultural Banco your you know you've you've got one of those factors the those. Silos that you can sort of hide away in and high touch. Relationship banking is still probably born. Go Way you you. You can probably hide their right that that's just fine. If you're sort of the smaller bank and your sort of main street bank, and you don't need high touch and high touch, by the way in my view, means people, branches, and all that stuff, high touch car like very quickly with affluence, and that's what we're saying with chase. Bank America Wells Fargo is that they're opening up will have tree pre pandemic right so everything's. Caveat, but pre pandemic, they were opening up a lot of branches in very affluent areas. They were closing lower income branch because economic stonework, and so if this real estate and the lower income is being served digitally, which is what we're seeing with like books and everything else. That's happened over the last twenty five years. Are you look at the Amazon things like books haven't died? Bookshops haven't gone away entirely, but the damn expensive and this for for kind of learned rich people who? Who who want an experience a story around it in one on one high touch, and so if you're a smoker, I would quickly go upscale. Pretty you know, and you can charge margins and all that other stuff and you can sit there and and deal with fairly affluent people, but that's really the only way I would survive in that I. Guess The the second way would be I. Still See there's at business out there for Fintech to create a conglomerate cope with one brand. Removal the local branding. You create a single brand, and almost like a franchise and go around the country and start and start to do things like that and I think that could work, but that wouldn't be in your power, and finally you basically been mobile transaction account with some expanded account management features being able to see your your your your money in a new way, juicy current expanding into other areas that your market still needs such as. Simplified, digital savings, small dollar digital andy. What called bridge loans almost what you did. When the government checks came out in in these people needed money fashion were going to get the checks or any other services. These are good point so so we have savings. We have round ups and also because savings pods. They don't have you on. Them will address that later this year. It hasn't been a focus for US growth model. Yeah, that's right. That is way markets is come in as we is with high interest, savings accounts very transparent. Lending is just a different business model that's right, and so they're going after a different user. Someone who has money, you can save and again that KPI's deposits. That's what they want we want spent we need. That's how we've set up. So, really we do have savings. We do want people to be in a better place to take that differential saving from Big Bang to current and keep it in their pocket and buy things they need with focused on liquidity management. So was we don't..

America Wells Fargo Fintech US Amazon
"chase bank america wells fargo" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:06 min | 2 years ago

"chase bank america wells fargo" Discussed on Bloomberg Radio New York

"J P Morgan. Chase Bank America Wells Fargo and much further down. It goes down to, you know, US Bank and. PNC and fifth third and other banks that you might think of as regional, but really have a run onto subside grown grown into integrate size, right because JP Morgan chases balance sheet is trillions of dollars Wells Fargo's above trillion dollars. So we're taking down on some order of magnitude smaller than that. But still very very large banks, and they control about thirteen trillion dollars. Right. Thirteen of the sixteen trillion dollars, and and these deposits, that's an extraordinary concentration, especially given that the number of institutions we're talking about a couple dozen, right? This changes as banks balance sheets to engine size at the margin. But we are seeing financial services dominated by a handful of institutions, and and we have not seen that really ever before in our history, including the great merger era of late nineteenth century, or you saw trusts around sugar oil. Corn harvesting machines right and fill in the blank there. These this is the great trust era. Great consolidation era. But interestingly enough because of the structure of the US political economy banks were extremely decentralized by law each Bank, the for a very very long time a Bank couldn't have more than one branch. And even after that was changed in the late nineteen twenties. They couldn't have branching across states, and that wasn't finally abolished where you would have a Bank doing business as its own institution across state lines until after nineteen eighty what about the repeal of less Steagall would that contribute towards thanks bulking up. I'd say contributed a lot. So I mean, this is this is a point of some debate among economic historians. It's correlated right with banks bulking up in in in pretty breathtaking fashion. What some economic historians say, well that's correlated, but wasn't caused by this last essentially unrelated to this is now that's hard. To swallow at least in the short run after around glass eagles, final legislative demise. Because of course, city grew become CitiGroup after Shabbat city it began the first mega back. And so, but then again, you know, a few years after that that was a pretty disastrous merger. They sold most of their insurance business because the synergies weren't present. And then what becomes really the shining example megabank J P Morgan Chase. And if we were list, all of the names of the banks acquired along the way. Hanover, chemical, absolutely. The bank. I what was Damon's Bank than in Chicago. I nationals called and he I believe he was at Smith Barney before that when he was a city. He was sandy wiles right hand, man. In designing the strand mega banking strategy. He loses in a power struggle goes to manage his Bank in Chicago comes back in JP, Morgan Chase's acquisition, which was essentially an employment contract acquisition, Jamie and become CEO and J P Morgan Chase with help from the federal government embarks on this strategy of just becoming as big as it can be. And so we are truly in an unprecedented era in terms of of banking consolidation. The United States so everybody used to talk about too big to fail. I liked to raise the question have these banks become too big to succeed are they even manageable? When you're running trillions of dollars in deposits can these things be managed, and that will segue right into our discussion of Wells Fargo. Such a great question too big to manage too big to jail too. Succeed. And that the way that you phrased that to be succeeded a fascinating because it calls into question the time horizon and the short and medium-term say that we're on a on a leading into a medium-term from the financial crisis managers have been good to be Jamie Dimon, right? That is a balance sheet is that has been an extremely floors ashville. Right. Fortress diamond is just it's it's unassailable. They were very fortunate your financial historian. You'll appreciate this. Most people don't realize J P Morgan Chase had their own derivatives crisis. But they were let's call it lucky enough or smart enough to have it years before everybody else. So they cleaned up the balance sheet while there was still a bid to hit. When did everybody else? They had nowhere to go. Now. This is another occasion in financial history. That a lot of people don't recognize I think this is Tim Geithner's signal contribution to to finance in his career and Eappen before he was secretary of the treasury, and that was in two thousand five thousand seven noting on a spectacular back office problem and rid of trading. So these are all bespoke derivatives, right? Even even number fancy, that's pretty plain vanilla. But they all are bespoke because there's no there's no marketplace for them to train on its no exchange for them. And so you would think sophisticated folks in two thousand five talking about nineteen ninety-five range. So the IT revolution is already taken. Pretty sure route you'd have some sort of oracle based software system where traders with two headsets on, you know, talking to different people released punching it into computer that would clear it will be universally access. And you think that you'd be around right? And what they were doing. Instead is on scraps of paper with a little golf pencils. Writing down the nature of the trade is though. Oh, they were signing their doctors handing prescription handing it back to a runner who take that piece of paper and put it in a stack. Right. And what Tim Geithner realize even though he the New York had had no supervisory authority over these broker dealers. Went to very important point realized that the back office back long was about nine months. Wow. Amazing. Absolutely amazing coming up. We continue our conversation with Peter.

J P Morgan Chase Chase Bank America Wells Fargo J P Morgan US Bank Tim Geithner US Jamie Dimon Wells Fargo PNC Chicago CitiGroup Smith Barney Steagall golf Hanover Damon
"chase bank america wells fargo" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:03 min | 2 years ago

"chase bank america wells fargo" Discussed on Bloomberg Radio New York

"J P Morgan. Chase Bank America Wells Fargo and much further down. It goes down to, you know, US Bank and. PNC and fifth third and other banks that you might think of as regional. But really have you know? Subside run grown into integrate size right because JP Morgan Chase is at its balance sheet is trillions of dollars Wells Fargo's above trillion dollars. So we're taking down on some order of magnitude smaller than that. But there are still very very large banks, and they control about thirteen trillion dollars. Right. Thirteen of the sixteen trillion dollars, and and these deposits, that's an extraordinary concentration, especially given the number of institutions we're talking about a couple of dozen, right? This changes as banks balance sheets change and size at the margin. But we are seeing financial services dominated by a handful of institutions, and and we have not seen that really ever before in our history, including the great merger era of late nineteenth century where you saw trusts around sugar oil. Corn harvesting machines right and fill in the blank there. These this is the great trust era, a great consolidation era. But interestingly enough because of the structure of the US political economy banks were extremely decentralized by law. Each Bank for a very very long time. A Bank couldn't have more than one branch. And even after that was changed in the late nineteen twenties. They couldn't have branching across states, and that wasn't finally abolished where you would have a Bank doing business as its own institution across state lines until after nineteen eighty what about the repeal of last eagle wooded that contribute towards thanks bulking up. I'd say contributed a lot. So I mean, this is this is a point of some debate among economic historians. It's correlated right with banks bulking up in in in pretty breathtaking fashion. What some economic historians that's correlated, but wasn't caused by this last eagle is essentially unrelated to this is now that's hard to swallow. At least in the short run after around glass eagles, final legislative demise. Because of course, city grew become city group after acquisition city. It comes. The first mega back. And so, but then again, you know, a few years after that that was a pretty disastrous merger. They sold most of their insurance business because the synergies weren't present. And then what becomes really the shining example megabank J P Morgan Chase. And if we were list, all of the names of the banks they required along the way. Hanover. Chemical is absolutely. You know, the Bank. I what was Jimmy diamonds Bank that in Chicago. I nationals called and he I believe he was at Smith Barney before that on a city. He was sandy wiles right hand, man. In designing the strategy mega-banking strategy. He loses in a power struggle goes to manage his Bank in Chicago comes back in JP Morgan Chase's acquisition, which was essentially an employment contract. Aquisition Jamie Dimon become CEO and J P Morgan Chase with help from the federal government embarks on this strategy. You just becoming as big as it can be. And so we are truly in an unprecedented era in terms of of banking consolidation. The United States so everybody used to talk about too big to fail. I liked to raise the question have these banks become too big to succeed are they even manageable? When you're running trillions of dollars in deposits can these things be managed and that'll segue, right? Into our discussion of Wells Fargo such a great question too big to manage to. To jail. Succeed. And that the way that you phrased it to be succeeded. So fascinating because it calls into question the time horizon and the short and medium-term may say that we're on on leading into a medium-term from the financial crisis managers have been good to be Jamie diamond. Right. Is that balance sheet is has been an extremely right fortress diamond is just it's it's unknown assailants. They were very fortunate your financial, storing, you'll appreciate this. Most people don't realize J P Morgan Chase had their own derivatives crisis. But they were let's call it lucky enough or smart enough to have it years before everybody else. So they cleaned up the balance sheet while there was still a bid to hit. When did everybody else? They had nowhere to go. Now. Computer that would clear it, and we'll be universally access, and you'd think that and you'd be round, right? What they were doing. Instead is on scraps of paper with a little golf pencils. Writing down the nature of the trade is though they were signing signing a prescription handing it back to a runner who would take that piece of paper and put it in a stack. Right. And what Tim Geithner realize even though he the New York fed had no supervisory authority over these broker dealers. Very important point realized that the back office back long was about nine months while amazing absolutely.

Bank J P Morgan Chase Chase Bank America Wells Fargo US Bank J P Morgan US PNC Jimmy diamonds Bank Chicago Wells Fargo Jamie Dimon golf Tim Geithner Smith Barney Hanover Jamie diamond CEO
"chase bank america wells fargo" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:03 min | 2 years ago

"chase bank america wells fargo" Discussed on Bloomberg Radio New York

"J P Morgan. Chase Bank America Wells Fargo and much further down. It goes down to, you know, US Bank and. PNC and fifth third and other banks you might think of as regional, but really have you know? Subside run grown into integrate size right because J P Morgan. Chase is at its balance sheet is trillions of dollars Wells Fargo's above trillion dollars. So we're taking down on some order of magnitude smaller than that. But are still very very large banks, and they control about thirteen trillion dollars. Right. Thirteen of the sixteen trillion dollars and these deposits, that's an extraordinary concentration, especially given that the number of institutions we're talking about a couple dozen, right? This changes as banks balance sheets change in size at the margin. But we are seeing financial services dominated by a handful of institutions, and we have not seen that really ever before in our history, including the great merger era late nineteenth century where you saw trusts around sugar oil. Corn harvesting machines right and fill in the blank there. These this is the great trust era. Great consolidation era. But interestingly enough because of the structure of the US political economy banks were extremely decentralized by law each Bank for a very very long time, a Bank couldn't have more than one branch. And even after that was changed in the late nineteen twenties. They couldn't have branching across states, and that wasn't finally abolished where you would have a Bank doing business as its own institution across state lines until after nineteen eighty what about the repeal of Steagall, what did that contribute towards thanks bulking up. I'd say contributed a lot. So this is this is a point of some debate among economic historians. It's correlated right with banks bulking up in in in pretty breathtaking fashion. What some economic historians late. Well, that's correlated, but wasn't caused by this last egos, essentially unrelated to this size now, that's hard. Swallow, at least in the short run after around glass, Glass-Steagall final legislative demise. Because of course, city group become CitiGroup after acquisition city. It'd be the first mega back. And so, but then again, you know, a few years after that that was a pretty disastrous merger. They sold most of their insurance business because the synergies weren't present. And then what becomes really the shining example megabank J P Morgan Chase. And if we were list, all of the names of the banks acquired along the way. Hanover chemical. Absolutely. You know, the Bank for what was Daime diamonds Bank in Chicago. I nationals called and he I believe he was at Smith Barney before that he was a city. He was sandy Weill right hand man in designing the strategy mega-banking strategy. He loses in a power struggle goes to manage his Bank in Chicago comes back in JP, Morgan Chase's acquisition, which was essentially an employment contract acquisition. Jamie Namen become CEO and J P Morgan Chase with help from the federal government embarks on this strategy or just becoming as big as it can be. And so we are truly in an unprecedented era in terms of of banking consolidation. The United States so everybody used to talk about too big to fail. I liked to raise the question have these banks become too big to succeed are they even manageable? When you're running trillions of dollars in deposits can these things be managed and that'll segue, right? Into our discussion of Wells Fargo. Such a great question too big to manage too big to jail too. Succeed. And that the way that you phrased it to succeed is so fascinating because it calls into question the time horizon and the short and medium-term say that we're on on leading into a medium-term from the financial crisis management been good to be Jamie Dimon, right. That is that balance sheet is been mixed. Extremely right fortress diamond is just it's it's unknown assailants. They were very fortunate your financial historian. You'll appreciate this. Most people realize J P Morgan Chase had their own derivatives crisis. But they were let's call it lucky enough or smart enough to have it years before everybody else. So they cleaned up the balance sheet while there was still a bid to hit. When did everybody else? They had nowhere to go. Now. This is another occasion in financial history. That a lot of people don't recognize, and I think this is Tim Geithner's signal contribution to to finance in his career happened before he was secretary of the treasury, and that was in two thousand five thousand seven noting on a spectacular back office problem. Andrew trading. Right. So these are all bespoke derivatives rate, even even if they're not very fancy these pretty plain vanilla. But they all are bespoke because there's no there's no marketplace for them to train on its no exchange for them. And so you would think sophisticated folks in two thousand five we're not talking about one thousand nine hundred five range. So the IT revolution has already taken pretty sure route you'd have some sort of oracle based software system where traders with two headsets on, you know, talking to people released punching them into a computer that would clear it, and we'll be universally access, and you'd think that and you'd be wrong, right? What they were doing. Instead is on scraps of paper with a little golf pencils. Writing down the nature of the trade is. Oh, they were signing a doctor's a prescription handing it back to a runner who would take that piece of paper and put her in the stack. Right. And what Tim Geithner realized even though he had had no supervisory authority over these broker dealers. It's very important point realized that the back office back long was about nine months. Wow. Amazing..

J P Morgan Chase Chase Bank America Wells Fargo J P Morgan US Bank Tim Geithner US Wells Fargo Chicago PNC Daime diamonds Bank sandy Weill CitiGroup Smith Barney golf Jamie Dimon Jamie Namen
"chase bank america wells fargo" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

07:29 min | 2 years ago

"chase bank america wells fargo" Discussed on Bloomberg Radio New York

"Your your students grad students or undergraduate both everything and executives and students at so we really teach them all. So so much has been going on in the world of banks since the financial crisis. I have to ask you about Dodd Frank and the changes to that. But before we get there. We now live in an era of megabanks all the banks are really relatively giant compared to before the financial crisis, a number of pretty substantial banks were either acquired or or moved over you have Washington mutual, and we'll covy, and, you know, look at all these different Bank, America and Merrill, Lynch. All these giant conglomerations? How is the modern era of banking different than the way it existed prior to the financial crisis? No. We've seen after the financial crisis, essentially, an unrivalled concentration in the financial system financial services. The looking at commercial deposits, for example, which include personal and commercial deposits, but seventeen trillion dollars right in the American. That's just checking and savings and checking and savings accounts for individuals and businesses organizations mega banks, which will call above two hundred and fifty billion dollars, right? So that's things like J P Morgan. Chase Bank America Wells Fargo and much further down. It goes down to, you know, US Bank and. PNC and fifth third and other banks that you might think of as regional. But really have you know? Grown into integrate size right because P Morgan Chase is its balance sheet is trillions of dollars Wells Fargo's above trillion dollars. So we're taking down on some order of magnitude smaller than that. But still very very large banks, and they control about thirteen trillion dollars. Right. Thirteen of the sixteen trillion dollars and these deposits, that's an extraordinary concentration, especially given that the number of institutions we're talking about a couple of dozen, right? This changes as banks balance sheets in size at the margin. But we are seeing financial services dominated by a handful of institutions, and we have not seen that really ever before in our history, including the great merger era late nineteenth century, or you saw trusts around sugar oil. Corn harvesting machines right and fill in the blank there. These this is the great trust era, great consolidation era. But interestingly enough because of the structure of the US political economy banks were extremely decentralized by law. Each Bank for a very very long time. A Bank couldn't have more than one branch. And even after that was changed in the late nineteen twenties. They couldn't have branching across states, and that wasn't finally abolished where you would have a Bank doing business as its own institution across state lines until after nineteen eighty what about the repeal of glass steagle wooded that contribute towards thanks bulking up. I'd say contributed a lot. So I mean, this is this is a point of some debate among historians. It's correlated right with banks a bulking up in in in pretty breathtaking fashion. What some economic historians say, well that's correlated, but wasn't caused by this last eagle was essentially unrelated to this is now that's hard to swallow at least in the short run after around Glass-Steagall final legislative demise. Because of course city grew to become group after city. If you can't comes the first mega back, and so, but then again, you know, a few years after that that was a pretty disastrous merger. They sold most of their insurance business because the synergies weren't present. And then what becomes really the shining example megabank J P Morgan Chase. And if we were list, all of the names of the banks acquired along the way. Over chemical. Absolutely. You know, the Bank for what was Daime diamonds Bank in Chicago. I nationals called any. I believe he was at Smith Barney before that he was a city. He was sandy Weill right hand man in designing the strategy mega banking strategy. He loses in a power struggle goes to manage his Bank in Chicago comes back in JP, Morgan Chase's acquisition, which was essentially an employment contract acquisition. Jamie Dimon become CEO and J P Morgan Chase with help from the federal government embarks on this strategy of just becoming as big as it can be. And so we are truly in an unprecedented era in terms of of banking consolidation. The United States so everybody used to talk about too big to fail. I liked to raise the question have these banks become too big to succeed are they even manageable? When you're running trillions of dollars in deposits can these things be managed, and that will segue right into our discussion of Wells Fargo. Such a great question too big to manage too big to jail too. Succeed. And that the way that you phrased that too big to succeed is a fascinating because it calls into question the time horizon and the short and medium-term say that we're on on leading into a medium-term from the financial crisis management been good to be Jamie diamond. Right. That is a balance sheet. Is venom extremely right fortress diamond is just it's it's unassailable. They were very fortunate your financial historian. You'll appreciate this. Most people don't realize J P Morgan Chase had their own derivatives crisis. But they were let's call it lucky enough or smart enough to have it years before everybody else. So they cleaned up the balance sheet while there was still a bid to hit. When did everybody else? They had nowhere to go. Now. This is another occasion in financial history. That a lot of people don't recognize this is Tim Geithner's signal contribution to to finance in his career to happen before he was secretary of the treasury, and that was in two thousand five thousand seven noting on a spectacular back office problem, Andrew trading. So these are all bespoke derivatives, right? Even even though they're not very fancy pretty plain vanilla. But they all are bespoke because there's no there's no marketplace for them to train on its no exchange for them. And so you would think sophisticated folks in two thousand five we're not talking about one thousand nine hundred five range. So the IT revolution has already taken pretty sure route you'd have some sort of oracle based software system where traders with two headsets on, you know, talking to different people released punching him into computer that would clear it, and we'll be universally access. And you'd think that you'd be around. All right. What they were doing. Instead is on scraps of paper with a little golf pencils. Writing down the nature of the trade is though. Oh, they were signing their sending a prescription handing it back to a runner. We'll take that piece of paper and put it in a stack. Right. And what Tim Geithner realize even though he the New York had had no supervisory authority over these broker dealers. Went to very important point realized that the back office back long was about nine months, while amazing absolutely.

J P Morgan Chase US Chase Bank America Wells Fargo Tim Geithner US Bank J P Morgan Wells Fargo Daime diamonds Bank Dodd Frank Chicago PNC Jamie Dimon sandy Weill golf Smith Barney
"chase bank america wells fargo" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:04 min | 2 years ago

"chase bank america wells fargo" Discussed on Bloomberg Radio New York

"J P Morgan. Chase Bank America Wells Fargo and much further down. It goes down to, you know, US Bank and. PNC and fifth third and other banks you might think of as regional, but really have grown grown into integrate size, right because JP Morgan chases its balance sheet is trillions of dollars Wells Fargo's above trillion dollars. So we're taking down on some order of magnitude smaller than that. But there are still very very large banks, and they control about thirteen trillion dollars. Right. Thirteen of the sixteen trillion dollars, and and these deposits, that's an extraordinary concentration, especially given the number of institutions we're talking about a couple dozen, right? This changes as banks balance sheets change in size at the margin. But we are seeing financial services dominated by a handful of institutions, and and we have not seen that really ever before in our history, including the great merger era of late nineteenth century, or you saw trusts around sugar oil. Corn harvesting machines right and fill in the blank there. These this is the great trust era. Great consolidation era. But interestingly enough because of the structure of the US political economy banks were extremely decentralized by law each Bank for a very very long time, a Bank couldn't have more than one branch. And even after that was changed in the late nineteen twenties. They couldn't have branching across states, and that wasn't finally abolished where you would have a Bank doing business as its own institution across state lines until after nineteen eighty what about the repeal of less Steagall wooded that contribute towards thanks bulking up. It's contributed a lot. So I mean, this is this is a point of some debate among economic historians. It's correlated right with banks bulking up in in in pretty breathtaking fashion. What some economic historians say, well that's correlated, but wasn't caused by this. We Glass-Steagall was essentially unrelated to this is now that's hard. Swallow, at least in the short run after around glass, steagle final legislative demise. Because of course, city group become city group after its acquisition city, it becomes the first mega back. And so, but then again, you know, a few years after that that was a pretty disastrous merger. They sold most of their insurance business because the synergies weren't present. And then what becomes really the shining example megabank J P Morgan Chase. And if we were list, all of the names of the banks acquired along the way. Hanover, chemical, absolutely. The Bank for what was Jimmy diamonds Bank than in Chicago. I nationals called any I believe he was at Smith Barney before that he was a city. He was sandy wiles right hand, man. In designing the strategy mega-banking strategy. He loses in a power struggle goes to manage his Bank in Chicago comes back in JP, Morgan Chase's acquisition, which was essentially an employment contract acquisition. Jamie Dimon become CEO and J P Morgan Chase with help from the federal government embarks on this strategy of just becoming as big as it can be. And so we are truly in an unprecedented era in terms of of banking consolidation. The United States so everybody used to talk about too big to fail. I liked to raise the question have these banks become too big to succeed are they even manageable? When you're running trillions of dollars in deposits can these things be managed, and that will segue. Right into our discussion of Wells Fargo. Such a great question too big to manage too big to jail to succeed. And that the way that you phrased that too big to succeed is a fascinating because it calls into question the time horizon and the short and medium-term say that we're on on a leading into a medium-term from the financial crisis management have been good to be Jamie Dimon, right? That is balance sheet is that has been an extremely right fortress diamond is just it's it's unknown assailants. They were very fortunate ura financial historian. You'll appreciate this. Most people don't realize J P Morgan Chase had their own derivatives crisis. But they were let's call it lucky enough for smart enough to have it years before everybody else. So they cleaned up their balance sheet while there was still a bid to hit when he did everybody else. They had nowhere to go. Now. This is another occasion in financial history. That a lot of people don't recognize, and I think Tim Geithner's signal contribution to to finance in his career and app, and before he was secretary of the treasury, and that was in two thousand five thousand seven noting on a spectacular back office problem, Andrew trading. So these are all bespoke derivatives, right? Even even though they're not very fancy these pretty plain vanilla. But they all are bespoke because there's no there's no marketplace for them to train on its exchange for them. And so you would think sophisticated folks in two thousand five we're not talking about nineteen ninety-five. Right. And so the IT revolution has already taken pretty sure route you'd have some sort of oracle based software system where traders with two headsets on, you know, talking to different people release punching them into computer that would clear and would be universally access, and you think that and you'd be wrong right where they were doing. Instead is on scraps paper with little golf pencils. Writing down the nature of the trade is though. They were signing their doctors having prescription handing it back to a runner who would take that piece of paper and put it in a stack. Right. And what Tim Geithner realize even though he the New York fed had no supervisory authority over these broker dealers. Very important point realized that the back office back long was about nine months. Amazing absolutely.

J P Morgan Chase Chase Bank America Wells Fargo J P Morgan Jamie Dimon US Bank Tim Geithner US Wells Fargo Chicago Jimmy diamonds Bank PNC Smith Barney Hanover treasury CEO
"chase bank america wells fargo" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:04 min | 2 years ago

"chase bank america wells fargo" Discussed on Bloomberg Radio New York

"So that's things like J P Morgan. Chase Bank America Wells Fargo and much further down. It goes down to, you know, US Bank and. PNC and fifth third and other banks that you might think of as region, but really have you know? A. Grown in into integrate size, right because P Morgan chases at its balance sheet is trillions of dollars Wells Fargo's above trillion dollars. So we're taking down on some order of magnitude smaller than that. But there are still very very large banks, and they control about thirteen trillion dollars. Right. Thirteen of the sixteen trillion dollars and these deposits, that's an extraordinary concentration, especially given the number of institutions we're talking about a couple dozen, right? This changes as banks balance sheets change and size at the margin. But we are seeing financial services dominated by a handful of institutions, and and we have not seen that really ever before in our history, including the great merger era late nineteenth century where you saw trusts around sugar oil. Corn harvesting machines right and fill in the blank there. These this is the great trust era. Great consolidation era. But interestingly enough because of the structure of the US political economy banks were extremely decentralized by law each Bank for a very very long time, a Bank couldn't have more than one branch. And even after that was changed in late nineteen twenties. They couldn't have branching across states, and that wasn't finally abolished where you would have a Bank doing business as its own institution across state lines until after nineteen eighty what about the repeal of last Steagall wooded that contribute towards thanks bulking up. I'd say contributed a lot. So this is this is a point of some debate among economic historians. It's correlated right with banks bulking up in in in pretty breathtaking fashion. What some economic historians say, well that's correlated, but wasn't caused by this last eagle is essentially unrelated to the size now, that's hard. Swallow, at least in the short run after a round glasses eagles final legislative demise. Because of course city group become CitiGroup after. City. It comes the first mega back. And so, but then again, you know, a few years after that that was a pretty disastrous merger. They sold most of their insurance business because the synergies weren't present. And then what becomes really the shining example of a mega Bank J P Morgan Chase. And if we were list, all of the names of the banks acquired along the way. Hanover. Chemical is absolutely. You know? No. The Bank for what was Jimmy diamonds Bank than in Chicago. I nationals has called and he I believe he was at Smith Barney before that he was a city. He was sandy wiles right hand, man. In designing the strategy mega banking strategy. He loses in a power struggle goes to manage his Bank in Chicago comes back in JP, Morgan Chase's acquisition, which was essentially an employment contract acquisition. Jamie Dimon become CEO and J P Morgan Chase with help from the federal government embarks on this strategy or just becoming as big as it can be. And so we are truly in an unprecedented era in terms of of banking consolidation. The United States so everybody used to talk about too big to fail. I liked to raise the question have these banks become too big to succeed are they even manageable? When you're running trillions of dollars in deposits can these things be managed and that will segue right into. To our discussion of Wells Fargo such a great question too big to manage too big to jail to succeed. And that the way that you phrased that too big to succeed is a fascinating because it calls into question the time horizon and the short and medium-term say that we're on on leading into a medium-term from the financial crisis management been good to be Jamie diamond. Right. That is that balance sheet is that has been an extremely right fortress diamond is it's an unassailable. They were very fortunate your financial historian. You'll appreciate this. Most people don't realize J P Morgan Chase had their own derivatives crisis. But they were let's call it lucky enough or smart enough to have it years before everybody else. So they cleaned up the balance sheet while there was still a bid to hit. When did everybody else they had nowhere to go? This is another occasion in financial history. That a lot of people don't recognize, and I think this is Tim Geithner's signal contribution to to finance in his career happened before he was secretary of the treasury, and that was in two thousand five thousand seven noting on a spectacular back office problem and derivatives trading. So these are all bespoke derivatives, right? Even even though they're not very fancy, these are pretty plain vanilla. But they all are bespoke because there's no there's no marketplace for them to train on its no exchange for them. And so you would think sophisticated folks in two thousand five we're not talking about one thousand nine hundred five range. So the revolution has already taken. Pretty sure rude. You'd have some sort of oracle based software system where traders with two headsets on, you know, talking to different people release punching him into computer that would clear it, and we'll be universally access, and you think that and you'd be wrong right where they were doing. Instead is on scraps of paper little golf pencils writing down, the nature of the trade as though they were signing their doctors handing a prescription handing it back to a runner who take that piece of paper and put it in a stack. Right. And what Tim Geithner realize even though he the New York had had no supervisory authority over these broker dealers. Very important point realized that the back office back long was about nine months, while amazing.

J P Morgan Chase Chase Bank America Wells Fargo US Bank J P Morgan US Wells Fargo Chicago P Morgan Tim Geithner PNC Jimmy diamonds Bank Jamie Dimon CitiGroup Smith Barney eagles Hanover