US "Too Big To Fail" Banks Top $1 Trillion - What Happens Next?

Tyler Durden's picture

For the first time ever, the market cap of America's "Big Four" banks topped $1 trillion having surged 30% since Donald Trump was elected president. While to some this is cause for celebration, we note that the last time a nation's "big four" banks topped $1 trillion in market cap did not end well...

As Bloomberg notes, the four biggest U.S. banks were worth the most on record versus China's "Big Four" this month, as JPMorgan, Wells Fargo, Bank of America, and Citigroup were worth over $250 billion more than Industrial & Commercial Bank, China Construction Bank, Bank of China, and Agricultural Bank of China combined.

The four Chinese banks, the world's most profitable, were worth about the same as the U.S. foursome as recently as June.

However, as the chart above shows, while the American quartet's combined market value closed above $1 trillion for the first time last month, China achieved that goals in June 2015... and it did not end well.

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Trucker Glock's picture

Please stop banking at banks!

Mr Pink's picture

I don't even know what banks do anymore

NAV's picture

The Big Banks have become America’s power elite by feeding off the trillions in thin-air money printed by the Federal Reserve, which is owned by th Big Banks.

Adam Taggart of in his article It's Time to Get Painfully Honest: Banks Are Evil points out that “the Fed and the rest of the world'scentral banking cartel has printed over $12 Trillion since the Great Recession. Between the ECB and the DOJ, nearly $200 Billion of additional liquidity has been -- and continues to be -- injected into world markets each month(!) since the beginning of 2016…

He notes that “in the past 4 years, JP Morgan's in-house trading group has had exactly 2 days of losses…

“That's not trading. Trading involves uncertainty and risk. This situation has none. It's an extraction process -- siphoning value from the market day after day with ironclad dependability.

“And it's not just a few dollars here and there. In 2016, JP Morgan's daily average trading revenues were $80 million. Per day! That's nearly $20 billion for the year.”

We don’t have free markets anymore. As James Kunstler puts it, we have rackets, run by racketeers.

wren's picture

They take and turn people into debt slaves. And they convince you that you need to be.

cue in cue's picture
cue in cue (not verified) wren Mar 21, 2017 7:21 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do...

CJgipper's picture

Next?  We bail them out.

SilverRoofer's picture

It's technically called a Bail In

Bigly's picture

Gold=to the moon, alice?

DoctOZ's picture

It has had a nice run up since December. 

red1chief's picture

"What hapens next"? More Goldman-directed Fed largesse, that's what.

Timming's picture

HA. This is good stuff here.  But for years now everyone on ZH has been screaming bear is coming. And the dow has skyrocketed while most people on here were bearsihs. So, while I think there is a major crash coming it is probably wise to not jump the gun too early. But great article guys. Thanks!

Timming's picture

Despite all the illogical rallying in the markets there is one analyst who is getting the market moves right, time after time again and proves it in their past charts that they show to everyone. I know most of you already know this. But anyway,




ShepWave Pre-Market / Intra Day Update for Tuesday Publoished. TURN OFF THE CNBC!
Posted: 3/20/2017 22:15 EST


Now is not the time to be watching CNBC and using the methods of wishing or hoping that the markets do what you want them to do. TURN OFF THE CNBC!

We are continuing to see important technical movement in the indexes.

I get emails all the time regarding a potential impending MARKET CRASH! 

There are a lot of analysts who try to aggressively predict market moves and continue to get it wrong time after time. If we just watch the ShepWave BUY and SELL signals for the short, mid, and longer term trends, we will continue to make money on both the long and short sides; and yes, once a large market move does come, we will catch that too.  There is no need to make this more difficult than it is.

Log In at for Tuesday's Pre-Market / Intra Day ShepWave Update.

Also, ShepWave has approached our ideal maximum number of subscribers. We will be cutting off new subscribers in the near future. If you are a current subscriber or even if you have ever been a subscriber to ShepWave you will always be able to renew; so do not worry.

Dr.Carl's picture

Illogical rallying? Good one. Until ZH turns bullish the rally will continue. Lol

Nice charts. Stay with what is working for you. 

DoctOZ's picture

The SW has been dead on. People on ZH have been bearish for years and have missed at least 6k of Dow rally. Most have lost big because of being heavily short.

Dragon HAwk's picture

Banks Worth Something....  LOL

NAV's picture

There’s little competition at work between the people and the big banks when the Big Four are backed by a currency printing press. It’s a drastic truth that the Federal Reserve can outbid through printing any enemy or competitor, including the people of the United States. The US government has been put under the direction of money, i.e., the banking elite. Their $trillion bonanza  has nothing to do with Trump; he is just their latest excuse for sanctioned stealing.

Nathan Martin writes: “you have to understand that the Deep State exists as a TOOL of the global elite. They create money from nothing and have used that money from nothing to indebt and enslave the entire globe. They make money from nothing and use that money to elect puppet politicians and puppet judges. Thus they have circumvented all the checks and balances of the Constitution. There are no longer three branches, there is only one, and it is NOT controlled by the will of the people.

“The Constitution states that CONGRESS, your representatives, shall "Coin money and regulate the value thereof." But by a known and open conspiracy Congress turned over their obligation to PRIVATE individuals in the year 1913 with passage of the Federal Reserve Act.

“This was a history supernova. That act is ILLEGAL and UNCONSTITUTIONAL. It corrupted all laws that were created since that time.

“What followed was the IRS Act the very next year. They blew a bubble that became the "roaring 1920's," that led to the crash of 1929. Then came the bond market crash (debt), then came WWII. The central banks used WWII to foist the Bretton Woods Accord on the people of the planet with only a shame of due process. Out spilled the illegally create United Nations, the ‘World Bank,’ (they are still laughing over this), the IMF, the BIS, all of which are improperly not monitored or authorized by anyone but themselves.”

johnm3210's picture

Banks are going to fail due to Fukushimas 600 tons of plutonium burning in the pacific is spreading across the world and its ability to cause disease and death is unknown, but estimated to be able to easily shut down the food chain in the ocean and potentially on land too, it must be cleaned up, the first 3 links are ugly news, the last link is a way to clean up the radiation, Japan is in need of getting down to a through cleanup, what they are doing presently is worthless and puts the world in jeopardy, if you like your standard of living, Fukushima will change that, you and your family will potentially get sick from it or die, what is a zero hedge fund for, use some of you money to make alot of noise to get the cleanup started immediately:

JBPeebles's picture

Selective outages after I visit this site. If Vault 7 is correct, our government has at its disposal a dazzling array of technological tools meant to obscure the truth and target alt news sites and dissidents.

Obama's last act as President was to authorize the use of propaganda against American citizens. I find it highly disturbing that a departing President can abuse his power to sabotage the incoming President.

Trump has shown great sense of being wronged by his political competition and believed in the likelihood that the organs of state power were being used to surveil him. Not an easy thing to believe when the Media chorus is parroting the myth that Russia was involved.

Not by coincidence, the association of Trump with Russia began after a failed attempt was made to authorize a warrant for surveillance through FISA, which is a rubber stamp. The theory is that Obama sought alternate means by getting Trump classified as an agent of a foreign government and surveillance enabled.

The farsical Russian-did-it  campaign did cover up Democratic abuses of the national security, meant to hurt Trump. We don't know how many Obama plants remain to leak classified information. The goal is to subvert the legitimitely elected new President through assymetrical information warfare. A big part of that is the suppression of news unfavorable to the previous regime.

If we've degenerated into Banana Republic-type corruption then there can be no resolution and divisiness and dysfunction will worsen. Don't underestimate the political sphere's hold over the economic. In a banker-owned economy, Main Street's condition is irrelevant. This is the growing disconnect but even the single cell need its host to live.

Anteater's picture

The successful coup is the stealth business as usual coup, the 1999 Gramm-Leich-Bliley Soft Coup.

The standard coup is the in your face two airplanes and four buildings coup, the 9/11 Hard Coup.

One really successful coup version is the bold stroke bailout for 1%, the 2008 Hopey Changey Coup.

But the most enduring coup of all is the They Are Out To Get US, WWE Raw-style, the MAGA Royalty Coup.

-$30,000,000,000,000 later, the Idiots and Cretins are still waterboarding each other with Red and Blue KoolAid.

peterk's picture

australian banks , the big 4 are at Au590 bill all up... equity only.

considering australia is a speck on the world economic stage thats preety good for  a nation of 23 million

that makes the bubble here in property even more amazing



Soul Glow's picture

My bank is bigger than your bank.

YHWH is greater's picture

This time around there will be NO bailout of too kike to fail banks, thanks to executive order of our beloved President Donald John Trump.

And unlike big QE helped banks, AIG has NOT recover from 2008 downfall, good luck NINJA MBS.

We might run out of popcorn.


YHWH is greater's picture

BAC droping like an anvil > 5%  Party started !