The big banks, the world’s largest, have more than $6 trillion in assets under management, according to data from Bloomberg Intelligence.
So if they have $2.6 trillion or more under management that means their total assets under their control are worth about $6.6tn.
But they have less than half the market cap of the US’s largest banks.
The chart below shows the total market cap for the biggest banks, according with their respective market cap on the day they are established, in billions.
According to Bloomberg Intelligence, the largest banks have a combined market cap less than $200 billion.
The other big banks have market caps more than twice that.
It would be a great day for the big bank CEOs if they can pull off something that puts the bank in a good financial position.
Here are a few of the ways that could work: 1.
Hold a dividend.
The Big Four have been spending a lot of money lately on dividends.
But they have never done it in such large quantities.
“The bank CEOs and the shareholders of the banks are so focused on dividend payments that the banks do not have to reinvest in capital or reinvest in their own capital,” said Michael Grunwald, chief investment officer of the Vanguard Group, which tracks the banks.
“In fact, they’re actually taking out more loans.
And that’s what has driven the bank CEOs to take such huge, massive amounts of capital out of the business.
2.
Invest in their core businesses.
Banks are investing in their businesses to help them survive and grow.
3.
Pay dividends to the CEOs.
The biggest banks have paid themselves large dividends over the years.
4.
Re-organize their board of directors.
The banks have made a habit of making big changes in the board of the big four banks to strengthen their position and give them more control over the company.
5.
Dividend payouts for shareholders.
At the moment, the CEOs and other senior managers of the biggest four banks are not making large dividend payments to shareholders.
But a change in the rules in the US could change that.
A big change is that shareholders would have to vote to increase their stake in the company or if the board decides that it is a good idea to reduce their stake, shareholders could vote to cut their share.
6.
Get rid of the top executives.
In the past, executives of the largest four banks have received compensation packages that were bigger than the market value of their stocks.
That means they could earn more than the entire market cap combined.
A number of the bank’s top executives have received huge compensation packages, according.
7.
Punish the top bankers.
If the top CEOs were to be held accountable, it would be good for the financial markets.
As the chart below illustrates, there are only three major banks with market cap more than what they pay the CEOs, according Bloomberg Intelligence data.
They are: JPMorgan Chase Chase, Citigroup, and Bank of America.
8.
Change the board structure.
This could happen if the CEOs of the major banks were to retire.
9.
Stop paying dividends to shareholders and start paying dividends for shareholders The CEOs of banks have been taking huge payouts to themselves over the last few years, so that’s something that could change.
10.
Allow shareholders to vote on directors The directors of the five biggest banks are all current or former stockholders.
If the boards decided to allow shareholders to elect directors to the boards, it could make the board more democratic and would make it easier for the public to influence the decisions of the directors.
11.
Start offering stock options.
While it is illegal to take money out of your bank’s balance sheet for yourself, you could use the money to invest in a stock option.
12.
Increase dividend payouts.
The biggest banks also have the largest market caps, and the biggest bonuses.
Some investors are buying stocks and paying out cash, but it’s also possible that the payouts would decrease because of changes in regulation.
13.
Restructure the board.
One thing the bank boards are doing right now is to increase the pay of its CEOs.
14.
Take out more debt.
Many of the stock options that the big five banks are offering are for cash.
You could also sell some of the company’s debt to make money.
15.
Use the money for stock buybacks and dividends.
These are the same kind of investments that the bank stocks are made out of.
Investors could sell stock in the bank and get money back from the stockholders in the form of dividends.
This would be very popular.
16.
Create an incentive program.
