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JPMC is the only Tier-4 Global Systemically Important Bank in the world: https://en.wikipedia.org/wiki/List_of_systemically_important_banks https://en.wikipedia
by unmole 4y ago
JPMC is the only Tier-4 Global Systemically Important Bank in the world: https://en.wikipedia.org/wiki/List_of_systemically_important_banks https://en.wikipedia.org/wiki/List_of_systemically_important...
The reason it would be hit the hardest is because it's literally the biggest among entities deemed Too Big To Fail.
- yourapostasy 4y agoMakes one wonder what it takes to be designated Tier 5. On percentage of global GDP basis, surprisingly to laypeople JPMC hardly makes a dent measuring by AUM, but I’d like to see the total transaction value run through them tallied as a percentage of global GDP.
- credit_guy 4y agoHere’s a back of the envelope: the global GDP is about 100 Trillion USD [1]. The annual volume of Fedwire transactions is about 1 Quadrillion USD [2]. The Fed does not disclose volumes by bank, but let’s make the assumption they are roughly proportional with the AUM of the bank. JPMorgan has a 25% market share when calculated by AUM [3]. So a rough approximation would be that the volume of Fedwire transactions where JPMorgan is one of the counterparties is more than twice the global GDP. [1] https://en.m.wikipedia.org/wiki/Gross_world_product https://en.m.wikipedia.org/wiki/Gross_world_product [2] https://www.frbservices.org/resources/financial-services/wires/volume-value-stats/annual-stats.html https://www.frbservices.org/resources/financial-services/wir... [3] https://www.statista.com/statistics/727548/market-share-top-banks-thrifts-usa-by-assets/ https://www.statista.com/statistics/727548/market-share-top-...
- brutusurp 4y agoDoesn't make them trustworthy. It makes them a liability.