U.S. banks have traditionally been considered leaders in the global banking sector. They produce regularly high profitability, more than their international competitors.
They have been pioneers in many spheres, and banking products, and are known for their constant innovation. Several factors have allowed U.S. banks to maintain their performance in recent decades. These include growth in the domestic market, favorable economic conditions, as well as relatively loose regulations in the banking sector.
The year 2007 was considered as a year of crisis, turmoil in the banking industry, the crisis surcharge and credit that hit primarily the same U.S. bank. During the crisis, several banks, previously considered indestructible giants were forced to cut its profits by several billion dollars. These include the most important: Citigroup, Bank of America and Merrill Lynch.
However, one might think that this is not the first crisis of this magnitude and that there was already a crisis as banks have overcome this and quickly caught up with their losses. But the crisis seems to be characterized with a difference compared to earlier.
Indeed, while before the banks were often the cause of their failure by their aggressive strategy and their taste for risk (in this context one can think of their involvement in the bankruptcy of Long Term Capital Management in 1998 or risky investments in emerging countries- the context of financial crises in Russia and Asia), this time the situation is different.
Indeed, the CDO (collateralised debt obligations) which are grouped in mortgage packages were still considered very secure financial instruments, often with a triple-A rating.
The U.S. banking landscape is extremely diverse and these banking giants are the largest and most profitable banks in the world. Indeed, four of the six largest banks by market capitalization were until recently U.S. institutions: Citigroup, Bank of America, JP Morgan Chase and Wells Fargo.
Tags: Banking sector; American banks; Strategic project
[...] banks are probably best known for their taste for risk. They lead very often aggressive investment strategies with a maximized leverage to make the most profits. Nevertheless, despite the highly developed risk management teams, they are also people able to predict future risks. We are talking about the theory of "fat tails" that are very rare events, and in this theory the bankers fear most. Risk is omnipresent in the activities of banks. First, they often cooperate with portions of questionable credibility and solvency. [...]
[...] banks in recent years, including the credit crisis, should it not lead to a questioning of their approach? U.S. banks, the indestructible giant The foundations of success for U.S. banks The U.S. banking landscape was extremely diverse and was everywhere in different categories of institutions of varying importance and it was working on various crafts. However, one can speak of an emerging "global players" within the industry. These giants were the largest and most profitable banks in the world. Indeed, four of the six largest banks by market capitalization were U.S. [...]
[...] banks have been numerous. However, with few exceptions, it appears that these disturbances were instant attacks and have not affected the performance of U.S. banks in the long run. The banks have regained their profitability and is the reversal of economic conditions. They have become favorable with the help of the "Federal Reserve Board" who acted on the rate or as a lender of last resort. So today it is difficult to speak of a change of strategic projects of U.S. [...]
[...] banks are characterized by intermediation margins the highest of the major banking systems.For example, in 2005, their average margin of ahead of the European institutions significantly by As a result, U.S. banks are pioneers of financial innovation and that therefore they were first launched as restructuring-related financial transactions. Finally, speaking of the profitability of U.S. banks, do not forget the famous are banks, including Goldman Sachs, Morgan Stanley and Lehman Brothers. If the merger and acquisition activities generate revenue, these included the activities of trading and proprietary trading and contributes more to the profitability of these institutions. [...]
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