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Old 14-12-2017, 04:22 PM   #6
st jimmy
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Join Date: May 2016
Location: Amsterdam, Netherlands
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A lot of “conspiracy theorists” claim that bankers rule the world, but it now becomes clear that a mere 4 investment funds – of which BlackRock and Vanguard are the biggest - control the banks in the US.

During the 2007-2009 crisis, the Federal Reserve supported banks with more than $16 trillion in credit (the amount of credit received is in brackets in billions of dollars): Citigroup (2,500); Morgan Stanley (2,004); Merrill Lynch (1,949); Bank of America (1,344); Barclays PLC (868); Bear Sterns (853); Goldman Sachs (814); Royal Bank of Scotland (541); JP Morgan (391); Deutsche Bank (354); Credit Swiss (262); UBS (287); Leman Brothers (183); Bank of Scotland (181); and BNP Paribas (175).
Strangely foreign banks (highlighted in the previous list) received nearly $2.5 trillion.

The first of the following tables shows how the Big Four control the biggest 6 US banks.
The second table shows that the percentages owned are even higher, for example Vanguard owns at least an additional 3.59% on top of the 4.91% listed in the first table. Relatively Vanguard owns even more of these big banks than of other corporations.

The biggest 5 individual shareholders in Goldman Sachs are senior managers at Goldman Sachs – Lloyd Blankfein, John Weinberg, Mark Schwartz, Gregory Palm and David Viniar. Together these 5 men hold more than 5.5 million shares in Goldman Sachs (1.3%):

The influence of the big investments funds is even bigger than can be expected based on the percentages of the companies they own.
These investments funds own so-called “voting shares”, while other shareholders often own “privileged shares”. The “privileged shares” give privileges like receiving a fixed dividend, but deprive them of the right to vote at shareholder meetings. If my pension would be invested by a fund, I would be interested in privileges like receiving a fixed dividend, but wouldn’t want the fund that “invests” it to vote on the company policy.

Financial holding companies like the Vanguard Group, BlackRock, State Street Corporation and Fidelity (FMR) own mainly voting shares, which means that they have even more voting power than their share of the company suggests. These funds have the real control over the US banking system.
In my opinion a “passive” fund that owns “voting shares” is a contradictio in terminis.

Also some banks are major shareholders in other banks.
JP Morgan Chase for example holds more than 1.5% of the shares in 4 of the big US banks - Bank of America, Citigroup, Wells Fargo and Morgan Stanley. The Big Four also own many shares in JP Morgan Chase.
The Bank of New York Mellon Corporation also holds shares in the big US banks. The Bank of New York Mellon is also controlled by the Big Three – Vanguard 5.15%; State Street Corporation 4.72%; and BlackRock 2.62% (in 2015).

In 2011, a Swiss report showed that 1,128 companies and banks were at the core of global finance at the beginning of the financial crisis (2007). An even denser core of 147 companies controlled 40% of all corporate assets in the world.
Since 2009, the assets have become even denser (over fewer companies)…

Also interesting is that the Big Four investment funds control trillions of dollars worth of assets with a rather modest number of employees. With total assets of around $15 trillion, the Big Four together have less than 100,000 employees.
Citigroup alone has nearly 250,000 employees, while Wells Fargo has 280,000:

In 2015, Fidelity and State Street owned stocks in the Federal Reserve:

The companies that own shares in the Federal Reserve don’t have voting rights, but a 6% dividend per year (which is much higher than what I get on my savings).
According to the state media, the Federal Reserve is privately owned, but the Congress decides. How Congress could exercise control, when the Federal Reserve isn’t even audited, is beyond my level of understanding...
According to the state media, the Federal Reserve doesn’t make profit, which contradicts that the profits go back to the US Treasury:

Last edited by st jimmy; 14-12-2017 at 04:35 PM.
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