As it turns out, the banking sector is no different than these other industries that have been bailed out. After the government’s largesse, bad companies do well — and at the expense of the well managed, responsible, non-reckless firms.
Forbe’s Bob Lenzner shows us exactly how warped the bailed out banking sector has become: Bob notes that Six giant banks made $51 billion in profits last year, while the rest of the banking industry — the other 980 banking institutions — all lost money.
That is simply astonishing.
As the table below shows, the other 980 that lost money (in the aggregate) — thats a heckuva data point.
Trading Revenue at U.S. Bank Holding Companies in 2009
All data from December 2009 FR Y-9C filings. Dollar amounts in millions.
|Total Assets, Dec. 31, 2009||Trading Revenue||Pretax Income||As a Percentage of Pretax Income|
|1||Goldman Sachs Group||$849,278||$23,234||$19,451||119.4%|
|2||Bank of America||2,224,539||12,067||4,592||262.8%|
|Top 6 Aggregate||59,572||51,248||116.2%|
|7||Bank of New York Mellon||212,336||1,032||2,626 *||39.3%|
|Trust and Custody Banks Aggregate||2,139||6,408||33.4%|
|12||PNC Financial Services Group||269,922||170||3,324||5.1%|
|14||Fifth Third Bancorp||113,380||125||767||16.3%|
|15||Sun Trust Banks||174,166||100||(2,450)||N/R|
|Banks Nos. 12 to 15 Aggregate||558||4,273||13.1%|
|Remaining 971 Bank Holding Companies Aggregate||1,399||(19,284)||N/R|
|All Bank Holding Companies (986 banks) Aggregate||64,202||31,908||201%|
* Excludes $4.8B in securities losses related to restructuring of Bank of New York Mellon’s investment securities portfolio in Q3 2009. “N/R” = Not relevant. Table and data courtesy of Forbes.com
Source: Six Giant Banks Made $51 Billion Last Year; The Other 980 Lost Money Robert Lenzner Forbes, 06.03.10, 04:25 PM EDT http://www.forbes.com/2010/06/03/goldman-sachs-citigroup-markets-lenzner-morgan-stanley_2.html
Originally published at The Big Picture and reproduced here with the author’s permission.