Investment Banking Tutorials
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- Investment Banking vs Commercial Banking
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- Investment Banking vs Equity Research
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- Commercial Banking vs Merchant Banking
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- Top Banks
- Top Banks in Australia
- Top Banks In Austria
- Top Banks In Bahrain
- Top Banks In Belgium
- Top Banks In Bermuda
- Top Banks In British Virgin Islands
- Top Banks In Brunei
- Top Banks In Canada
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- Top Banks In Denmark
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- Top Banks In Greenland
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- Top Banks In Ireland
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- Top Banks In Japan
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- Top Banks In Qatar
- Top Banks In Saudi Arabia
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- Top Banks In South Korea
- Top Banks In Sweden
- Top Banks In Switzerland
- Top Banks in UAE
- Top Banks in United Kingdom
- Top Banks in USA
- Mergers and Acquisitions
- What is Mergers and Acquisitions?
- Mergers vs Acquisitions
- Synergy in M&A
- Successful Mergers and Acquisitions
- Financing Acquisitions
- Statutory Merger
- Joint Venture
- White Knight
- Hostile Takeover
- Golden Parachute
- Poison Pills
- What is Amalgamation?
- Spin off vs Split Off
- Forward Integration
- Backward Integration
- Best Mergers and Acquisitions Books
- What is Asset Restructuring?
Overview of Banks in USA
The US banking system and banks are regulated by the Federal and state governments. The Federal Bank and other regulatory authorities like the SEC make new and stricter regulations for Banks in the wake of financial crisis. As per FDIC Statistics, there are 5,542 FDIC insured institutions which include 4,833 commercial banks and 709 savings banks as of 30 June 2018.
Structure of Banks in USA
Banks in USA are categorised as below:
- Savings banks are for-profit businesses. Savings Banks in USA take deposits from the account holders and the money thus collected is invested by the Bank. The account holders get an interest rate out of the return generated from the investments.
- Credit unions are non-profit cooperative financial institutions. Credit Unions are owned and controlled by people generally into the similar living, working or something that is common amongst the members. These unions work to empower the community and not to earn the profit. The US has the highest number of credit unions in the world.
- Commercial banks mainly serve businesses. These banks offer services such as accepting deposits, granting business loans, and offering basic investment products.
- Savings and loans banks are into retail banking services where the depositors earn interest on their deposits. The Banks use the deposited money to provide loans like auto loans, home loans etc.
- Investment banks in USA are companies that give investment advice. They buy and sell stocks and bonds. Depending on the bank, they may not accept deposits or make loans, and not all are FDIC insured.
Top Banks in USA
As per Federal Reserve Statistics, top 10 large Banks in USA are given below. The assets are as on 31st March 2018.
#1. JPMorgan-Chase Bank
JP Morgan Chase Bank is the top Bank in USA, headquartered in New York has more than 2 trillion dollars of assets. The Bank was formed by the merger of two old banks, JP Morgan and Company and Chase Manhattan Corporation. The Bank uses JP Morgan name for Investment banking and private wealth management functions whereas Chase is used to providing retail and commercial banking services.
John Pierpont Morgan was the founder of JP Morgan Bank in the 19th century whereas an American politician, Aaron Burr was the founder of Chase Manhattan. The Bank has more than 1,60,000 employees worldwide which provides services related to investment banking, asset management, private banking, private wealth management, treasury and security services, retail banking services, credit card services, and commercial banking.
#2. Bank of America
Bank of America was started as a small institution by the name Bank of Italy to serve the immigrants in the US in 1904. Years later after expansion and mergers, the Bank now called Bank of America is one of the biggest Banks in USA headquartered in Charlotte, North Carolina. Although, the Bank may not be the largest in the US it does own the largest wealth management Company, Merrill Lynch.
Bank of America through its banking and non-banking subsidiaries and close to 4500 branches in the US provides a range of financial services. The services include consumer banking, Global Wealth and Investment Management, Global Banking.
#3. Wells Fargo
Founded 166 years ago by Henry Wells and William Fargo in March 1852, Wells Fargo is the second top Bank in USA by market Cap in the world and third largest in the US by the number of assets it holds. The Bank is headquartered in San Francisco and employs more than 260,000 individuals. This Bank in USA holds the distinction of being the very first bank to receive a charter from the United States government which it received from the First National Bank of Philadelphia after the acquisition of Wachovia in 2009.
This top Bank in USA provides the number of products and services under three different segments Community Banking, Wholesale Banking and Wealth, Brokerage and Retirement. The Banks products include asset management, commercial banking, brokerage services, credit cards, commodities, corporate banking, consumer banking, consumer finance, finance and insurance, foreign currency exchange, equities trading, foreign exchange trading, insurance, investment banking, futures and options trading, money market trading, private banking, mortgage loans, retail banking, prime brokerage, risk management, underwriting and wealth management.
#4. Citigroup Inc.
The fourth largest financial institution in the United States, Citigroup Inc. was formed by the merger of Citicorp and Travelers Group in 1998, however, travelers were spun off in 2002. Headquartered in New York City, the group is a leader in the credit card industry and ATMs. It provides financial products and services to consumers, corporation, governments, and institutions worldwide. It operates through its subsidiaries, Citicorp and Citi Holdings.
#5. US Bancorp/U.S. Bank
US Bancorp is headquartered in Minneapolis and was found after the merger of major regional banks from west and Midwest. US Bancorp is the holding Company of the 5th largest Bank in the United States – US Bank. Its subsidiary US Bank provides banking and financial services to clients. This Bank in USA also has credit card services, merchant and ATM processing, mortgage banking, brokerage services, and leasing.
US Bancorp also owns Elavor the credit card transaction processing Company along with other subsidiaries like Elan Financial Services and Syncada.
#6. PNC Bank NA/PNC Financial Services Group
PNC is based in Pittsburgh formed after the merger of two Pennsylvania banks Pittsburgh National Corporation and Providence National Corporation after which they named the merged entity simply as PNC.
The group has many segments which include – retail banking, corporate and institutional banking, asset management group and residential mortgage banking etc.
#7. Bank of New York Mellon
The Bank of New York Mellon was founded by first Secretary of Treasury – Alexander Hamilton in 1784. It was formed after the merger of T. Mellon and Pittsburgh based financial institution – Sons. It is the oldest banking corporation in the United States and the world’s largest custodian bank to other financial institutions. The Bank through its subsidiary BNY Mellon Wealth Management provides invest services as well.
#8. TD Bank, TD Group US Holdings LLC
TD Group US Holdings is headquartered in New Jersey and a subsidiary of Canadian Bank based in Toronto. The Bank provides banking, insurance, brokerage, and investment banking services and caters to clients mostly in US and Canada.
#9. Capital One/Capital One Financial Corporation
Virginia based Capital One Financial Corporation is primarily into retail banking. It provides credit cards, auto loans, home loans, and savings services.
#10. State Street Corporation
Boston based State Street Corporation is a Bank holding Company which provides various services through its subsidiaries. It is one of the largest Asset Management Companies in the world. It also provides investment services to clients along with securities lending and trading.
We hope you liked this guide to top 10 best banks in USA. Here we discuss the overview of Best USA Banks along with its structure and industry dynamics. If you are looking forward to making a career in Banking, then you can check out some of the awesome resources –