Bank Ratings: U.S. Bancorp Tops, Morgan Stanley Last

Bank Ratings Through December 31, 2012

The 10 Largest USA Banks have reported fourth quarter 2012 financial results, i.e., financial performance for the quarter ending 12-31-12 and financial position at 12-31-12. There were several changes in the quarterly ratings: 4 upgrades and 2 downgrades. The median score is "D" and the average score for the quarter ending December 2012 is "C+", an increase from the average score of "C" for the prior quarter ending September 2012.

Largest USA Banks Rankings The 10 Largest USA Banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Rating, Bank, Change
A     U.S. Bancorp
A-    Wells Fargo
A-    Capital One
A-    PNC Financial Services, upgrade from B+
B+   BNY Mellon, upgrade from B
B-    Citigroup, upgrade from E+
C+   Bank of America, downgrade from B-
D     JPMorgan Chase
D     Goldman Sachs, upgrade from F-
G     Morgan Stanley, downgrade from E-
B+   Average

Above Average U.S. Bancorp is the sole leader at "A", followed by Wells Fargo, Capital One, and PNC Financial Services at "A-". These 4 banks have moved positively beyond the 2008 financial crisis. BNY Mellon and Citigroup are next at "B+" and "B-", respectively.

Average Bank of America is at the average of "C+".

Below Average JPMorgan Chase and Goldman Sachs are next at "D", which is the median rating. Trailing the field is Morgan Stanley at a dismal "G".

Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 10 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with the latest quarterly financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score can vary each quarter.

Financial position is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from internal and/or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominant intent of the ratings.

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Max Keiser: Fake-It-Til-You-Make-It Economy

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Max Keiser

Keiser Report: Fake-It-Til-You-Make-It Economy

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the global yellow cake baking, talcum powder shaking, perpetual war making, balloon boy chasing, fake it til you make it economy in which spoof trading and a shadow banking system collateralized by a combination of liar loans and temporary workers consuming genetically modified food-like products produces such heroes for our times as Robb U, the guy who was handed $6 million in loans based on having a YouTube music video with a million plus views.

In the second half of the show, Max Keiser talks to former Scotland Yard fraud squad detective, Rowan Bosworth-Davies of Rowans-Blog.blogspot.co.uk about justice departments and regulators going after the 'little guy' because he is 'easier' to get than the too-big-to-fail.

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Goldman Sachs Earnings Review: Multi-Year High for Banksters!

Goldman Sachs reported QE December 2012 financial results on January 16

Goldman Sachs earnings have attained post-financial crisis peaks with a 12-quarter high for earnings per share ($5.60) and an 11-quarter high for net income ($2.89 billion). The World's Most Hated Banksters, led by CEO Lloyd Blankfein, have achieved redemption from shareholders, at least for now.

Financial position has been stable, but capital continues marginal. Risk management appears to be attempting to evade prosecution for criminal activities, settling without admitting guilt, and bribing Congress to keep the financial regulators away. Negative karma continues at epic levels but give the Devil his due for this quarter.





At QE 12-31-12, I have tentatively rated Goldman Sachs a "D" on a scale of A+ to G-. This is an upgrade from "F-" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.





“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “The firm’s strategic position provides a solid basis on which to grow and generate superior returns.”

$GS $XLF

Largest USA Banks Ratings: U.S. Bancorp, Wells Fargo, Capital One Tops, Goldman Sachs Last

Big Banks Ratings Through September 30, 2012

The Largest USA Banks have reported third quarter 2012 financial results, the financial performance for the QE 9-30-12 and financial position at 9-30-12. There were several changes in the quarterly ratings: 4 downgrades and no upgrades. The median score is "D" and the average score for QE September 2012 is "C".

Above Average U.S. Bancorp is the sole leader at "A", followed by Wells Fargo and Capital One at "A-". These 3 banks have moved positively beyond the 2008 financial crisis. PNC Financial Services is next at "B+", followed by Bank of New York Mellon at "B" and Bank of America at "B-".

Below Average JPMorgan Chase is next at "D", which is the median rating. Citigroup follows with an "E+", below the median rating of "D". Farther below is Morgan Stanley at "E-". Trailing the field is Goldman Sachs, continuing at a dismal F-.

Rating, Bank, Change
A     U.S. Bancorp
A-    Wells Fargo
A-    Capital One
B+   PNC Financial Services
B     BNY Mellon
B-    Bank of America => (downgrade from B)
D     JPMorgan Chase
E+   Citigroup => (downgrade from D-)
E-    Morgan Stanley => (downgrade from E+)
F-    Goldman Sachs => (downgrade from G+)
C     Average

Largest USA Banks Rankings The 10 Largest USA banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 10 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with the latest quarterly financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score can vary each quarter.

Financial position is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from either internal or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominant intent of the ratings.

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Goldman Sachs Earnings Review: Moderate Rebound by Banksters

Goldman Sachs reported QE September 2012 financial results on October 16

Goldman Sachs, The World's Most Hated Bankers, led by CEO Lloyd Blankfein, the World's Most Corrupt Banker, reversed the financial performance downtrend with a moderate rebound. Financial position has been stable, but capital continues questionable. The 7 Deadly Sins have superseded risk management. We await what hell this Epitome of Evil will contrive next for America, currently they are busy focusing on scamming Europeans.

At QE 9-30-12, I have rated Goldman Sachs an "F-" on a scale of A+ to G-. This is an upgrade from "G+" at the prior QE 6-30-12. The median rating is "D" and the average rating at QE 6-30-12 was "C". Financial position is weighted more than financial performance. The QE 6-30-12 bank ratings review is here.







“This quarter’s performance was generally solid in the context of a still challenging economic environment,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “We continue to be disciplined in managing our operations and capital, while effectively serving our clients’ needs. The focus on these priorities will serve our shareholders and the firm well over the longer term.”

$GS $XLF

NCUA Sues Barclay’s Capital for Misrepresentations

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NCUA Sues Barclay’s Capital

Legal Action Is the Agency’s Seventh Against Wall Street Investment Firms

NCUA has previously filed similar actions against J.P. Morgan Securities, LLC, RBS Securities, Goldman Sachs, Wachovia and UBS Securities. NCUA has already settled claims worth more than $170 million with Citigroup, Deutsche Bank Securities and HSBC, making it the first federal regulatory agency for depository institutions to recover losses from investments in faulty securities on behalf of failed financial institutions.

(NCUA; September 25, 2012)

ALEXANDRIA, Va. (Sept. 25, 2012) – The National Credit Union Administration (NCUA) today filed suit in Federal District Court in Kansas against Barclay’s Capital, Inc.

NCUA’s suit alleges Barclay’s, the U.S. subsidiary of the British financial services firm, violated federal and state securities laws through misrepresentations in the sale of mortgage-backed securities to U.S. Central Federal Credit Union (US Central) and Western Corporate Federal Credit Union (WesCorp). The price paid for the securities by US Central and WesCorp exceeded $555 million. Both corporate credit unions subsequently failed.

“Trust and accountability are two cornerstones of our financial system,” said NCUA Board Chairman Debbie Matz. “As clearly outlined in our complaint, Barclay’s violated that trust by issuing faulty disclosures on securities underwritten by the firm. As a result, two corporate credit unions collapsed, and the entire credit union industry experienced a crisis. Since then, NCUA has successfully worked to restore stability to the credit union system. Now we are working to hold Barclay’s, and other responsible parties, accountable for their actions.”

NCUA’s complaint alleges Barclay’s made numerous misrepresentations and omissions of material facts in the offering documents of the securities sold to the failed corporate credit unions. The complaint also alleges systemic disregard of the underwriting guidelines stated in the offering documents. These misrepresentations caused US Central and WesCorp to believe the risk of loss was minimal, when in fact the risk was substantial.

As liquidating agent for US Central and WesCorp, NCUA has a statutory duty to seek recoveries from responsible parties in order to minimize the cost of any failure to its insurance funds and the credit union industry. Recoveries from these seven additional legal actions would further reduce the total losses resulting from the failure of the five corporate credit unions. Losses from those failures must be paid from the Temporary Corporate Credit Union Stabilization Fund. Expenditures from this fund must be repaid through assessments against all federally insured credit unions. Thus, any recoveries would help to reduce the amount of future assessments on credit unions.

Corporate credit unions are wholesale credit unions that provide various services to retail credit unions, which in turn serve consumers, or “natural persons.” Retail credit unions rely on corporate credit unions to provide them such services as check clearing, electronic payments, and investments.

NCUA Sues Barclay’s Capital

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Wall Street Banksters: Ongoing Bailouts & No Criminal Prosecutions!

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Neil Barofsky on the Ongoing Bailout of Wall Street and the Lack of Criminal Prosecutions

Welcome to Capital Account. The legacy of the financial crisis and the response from the government is still making headlines. It has turned into a legacy with taxpayers footing the bill and Wall Street paying less for its crimes. Today the SEC charged Wells Fargo's brokerage firm, as well as a former Vice President, for selling investments tied to Mortgage-Backed Securities without fully understanding their complexity or disclosing the risk to investors. Wells Fargo agreed to settle the charges. However, a fine of $6.5 million, no admission of guilt, and a 6-month suspension of the Vice President sounds like a handslap playing on a broken record. We talk to Neil Barofsky, the man who helped prosecute the CEO and President of Refco, and the watchdog for TARP -- the government-sposered bailout of Wall Street.

Neil Barofsky discuses the costs associated with the taxpayer funded bailouts of wall street doled out through tarp and the false promises made under the pretense of bailing out main street. He provides an in-depth account of his experience behind the scenes, as he tried to negotiate what he initially believed, was a program designed to save main street, but that he later discovered was really created with the full intention of bailing out wall street. That man is Neil Barofsky, the former Special Inspector General for TARP and author of "Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street."

Also, Bloomberg reports that Russell Wasendorf Sr., the CEO of the bankrupt Peregrine Financial Group, was indicted on 31 counts for making false statements to regulators. We ask Neil Barofsky if, even without blatant confessions of guilt, there are legitimate criminal cases that could be built around executives at major firms. He cites the LIBOR scandal as the most current, and most obvious example of an opportunity for criminal charges and prosecutions to be filed by authorities.

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Big Banks Long-Term Growth Stalls: U.S. Bancorp and Wells Fargo Shine

Long-Term Year on Year Earnings Performance

Only 2 of the 10 Largest USA Banks reported gains in net income from the prior year Q2 2012. The other 8 reported year over year decreases. Shining were U.S. Bancorp (+18%) and Wells Fargo (+17%). Reporting the smallest YoY decreases were JPMorgan (-9%), Goldman Sachs (-12%), and Citigroup (-12%). Those dropping more significantly were BNY Mellon (-35%), PNC Financial (-40%), and Morgan Stanley (-50%). Even worse at next-to-last and last-place were Capital One (-90%) and Bank of America (-128%).



Short-Term Quarter on Quarter Earnings Performance

Sequential quarterly net income results, the change from the prior quarter Q1 2012, were better. 6 of the 10 Largest USA Banks reported increases with Morgan Stanley and Bank of America at the top with +729% and +277%, respectively. Next were Wells Fargo (+9%), U.S. Bancorp (+6%), JPMorgan (+1%), and Citigroup (+1%). Reporting decreases QoQ were BNY Mellon (-21%), PNC Financial (-33%), Goldman Sachs (-54%), and Capital One (-94%).



Largest USA Banks Ratings: U.S. Bancorp & Wells Fargo Tops, Goldman Sachs Last

Big Banks Assets Shrink, Capital Strengthens

Big Banks Earnings Increase: JPMorgan, Wells Fargo, Citigroup Most Profitable

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Big Banks Earnings Increase: JPMorgan, Wells Fargo, Citigroup Most Profitable

Quarterly Net Income

All 10 of the Largest USA Banks reported net income for the QE 6-30-12, reaching an aggregate quarterly net income of $19.1 billion. This is a small increase of +$142 million and +0.75% from the prior QE 3-31-12, but a strong increase of +$9.1 billion and +48% from the prior year QE 6-30-11.

Bank of America (+$1.81 billion) and Morgan Stanley (+$685 million) reported the largest sequential QoQ increases. Capital One (-$1.31 billion) and Goldman Sachs (-$1.15 billion) reported the largest sequential QoQ decreases.

The Billion Dollar Club: JPMorgan Chase led the way at #1 with $4.96 billion in quarterly net income. Wells Fargo was #2 at $4.62 billion. Citigroup ($2.95 billion), Bank of America ($2.46 billion), and U.S. Bancorp ($1.42 billion) were next. Below $1 billion in quarterly net income were Goldman Sachs ($962 million), Morgan Stanley ($591 million), PNC Financial Services ($546 million), and BNY Mellon ($496 million). Capital One was last and #10 with quarterly net income of a near break-even $93 million.



Return on Assets

The 10 Largest USA Banks reported an average return on assets of +0.83% for the QE 6-30-12, which was a small decrease -0.03% from the prior QE 3-31-12 of +0.86%.

The 1%+ Club: U.S. Bancorp and Wells Fargo were the clear leaders with an ROA of +1.60% and +1.30%, respectively. Capital One was #3 at 1.13%. Just below the 1% ROA benchmark was PNC Financial Services at +0.96%. Next were JPMorgan Chase (+0.78%) and BNY Mellon (+0.72%). Further down were Citigroup (+0.55%) and Bank of America (+0.52%). Trailing at #9 and #10 were Goldman Sachs (+0.39%) and Morgan Stanley (+0.31%).



Largest USA Banks Ratings: U.S. Bancorp & Wells Fargo Tops, Goldman Sachs Last

Big Banks Assets Shrink, Capital Strengthens

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Big Banks Assets Shrink, Capital Strengthens

Total Assets

The 10 Largest USA Banks reported aggregate total assets of $10.69 trillion for the QE 6-30-12. This is a small decrease of -$57 billion and -0.53% from the prior QE 3-31-12, but a strong increase of +$105 billion and +1.00% from the prior year QE 6-30-11.

The 3 largest banks in the USA, JPMorgan, Bank of America, and Citigroup, all reported decreases in total assets as did 5 of the 6 biggest. The remaining 4 reported increases. JPMorgan reported the largest decrease (-$30 billion) followed by Citigroup and Morgan Stanley (both -$28 billion). BNY Mellon reported the largest increase (+$30 billion) followed by U.S. Bancorp (+$12 billion).

Largest USA Banks by Total Assets The Trillion Dollar Club: JPMorgan Chase continues #1 with total assets of $2.29 trillion, Bank of America is #2 with $2.16 trillion, Citigroup is #3 with $1.92 trillion, and Wells Fargo continues #4 with $1.34 trillion. Next are Goldman Sachs at $949 billion and Morgan Stanley at $754 billion. U.S. Bancorp $353 billion, Bank of New York Mellon $330 billion, PNC Financial Services $300 billion, and Capital One at $297 billion round out the top 10.



Capital Ratio

The 10 Largest USA Banks reported an average capital to assets ratio of 10.39% for the QE 6-30-12, an increase from the prior QE 3-31-12 (10.27%). The increase was broad with 8 of the 10 reporting higher ratios. BNY Mellon reported the only notable decrease (from 11.60% to 10.71%) and the Capital One decrease (from 12.55% to 12.54%) was negligible.

Largest USA Banks by Capital Ratio The 10%+ Club: PNC Financial Services, Capital One, Wells Fargo, U.S. Bancorp, Bank of America, and BNY Mellon all have capital ratios greater than 10%, which is very good. Citigroup, JPMorgan, Morgan Stanley, and Goldman Sachs are below 10%.



Largest USA Banks Ratings: U.S. Bancorp & Wells Fargo Tops, Goldman Sachs Last

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Largest USA Banks Ratings: U.S. Bancorp & Wells Fargo Tops, Goldman Sachs Last

The Largest USA Banks have reported second quarter 2012 financial results. There were several changes in the quarterly ratings: 3 upgrades and 2 downgrades. The median score is "D" and the average score for the QE June 2012 is "C".

Above Average U.S. Bancorp is the sole leader at "A", followed by Wells Fargo and Capital One at "A-". These 3 banks have moved positively beyond the 2008 financial crisis. PNC Financial Services is next at "B+", followed by Bank of New York Mellon and Bank of America at "B".

Below Average JPMorgan Chase follows at "D". Citigroup is next with a "D-", below the median rating of "D". Farther below is Morgan Stanley at "E+". Trailing the field is Goldman Sachs, continuing at a dismal G+.

Rating, Bank, Change
A      U.S. Bancorp
A-     Wells Fargo
A-     Capital One => (downgrade from A)
B+    PNC Financial Services => (downgrade from A-)
B      BNY Mellon => (downgrade from B+)
B      Bank of America => (upgrade from C+)
D     JPMorgan Chase
D-    Citigroup
E+    Morgan Stanley => (upgrade from F-)
G+   Goldman Sachs
C      Average

Largest USA Banks Rankings The 10 Largest USA banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 10 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with June 30, 2012 financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score varies each quarter.

Financial position strength, notably the capital ratio, is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from either internal or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominate intent of the ratings.

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Goldman Sachs Earnings Review: Downtrend Continues

Goldman Sachs reported QE June 2012 financial results on Tuesday, July 17

Goldman Sachs comes now before us, The World's Most Hated Bankers led by CEO Lloyd Blankfein who is not only the World's Most Corrupt Banker but possibly now the most inept. By inept, I mean year over year decreases in earnings per share 3 of the past 4 quarters and 8 of the past 11 quarters.

Apparently Blankfein is very smart even though inept in his current CEO position: to lead an investment banking house that is criminally insane, helped themselves to American taxpayers' money, ripped off the entire world with fraudulent securitizations, traded against positions recommended to clients, and doesn't make much money - but yet he keeps his job! Bravo for him but not for the shareholders, clients, and future unsuspecting victims...

Financial position is marginal and questionable without the $166.99 billion in unsecured long-term borrowings being counted as capital. The earnings reports are veiled. Goldman Sachs dispenses only the information they feel the mighty GS should allow commoners, shareholders, and clients, known internally as "muppets", to see.

Metric, QoQ Change, YoY Change:
Net Revenues: $6.63 billion, -33%, -9%
Net Income: $962 million, -54%, -12%
Earnings per Share: $1.78, -55%, -4%

I have not rated Goldman Sachs at the current QE 6-30-12 due to insufficient data and will rate at a later date. At QE 3-31-12, I have rated Goldman Sachs a "G+" on a scale of A+ to G-. The median rating is "D" and the average rating was "C". Financial position strength is weighted more than financial performance. The bank ratings review is here.











News Flash! Latest Goldman Sachs' Propaganda: “During the second quarter, market conditions deteriorated and activity levels for both corporate and investing clients were lower given continued instability in Europe and concerns about global growth,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Still, we remain focused on meeting our clients’ needs, while prudently managing our capital, liquidity and risk.”

$GS $XLF

Big Banks Earnings Increase: JPMorgan, Wells Fargo, Citigroup Most Profitable

9 of the 10 Largest USA Banks reported net income for the QE 3-31-12, with only Morgan Stanley reported a net loss. Aggregate quarterly net income for the Big Banks was $19.4 billion, which was +$5.1 billion and +36% from the prior QE 12-31-11 ($14.3 billion). Citigroup (+$1.98 billion), JPMorgan (+$1.66 billion), and Goldman Sachs (+$1.10 billion) reported the largest sequential QoQ increases. Bank of America (-$1.34 billion) reported the largest sequential QoQ decrease.

Regardless of the recent minimum $2 billion in trading losses incurred by JPMorgan Chase & Co., that is less than half of their most recent quarterly net income ($5.38 billion). No doubt this misstep materially impacts JPMorgan's financial performance for the current quarter, but to-date the losses do not appear life-threatening. See my recent post Too Big To Fail: JPMorgan Rolls the Dice, Loses $2 Billion.

The Billion Dollar Club: JPMorgan Chase led the way at #1 with $5.38 billion in quarterly net income. Wells Fargo was #2 at $4.25 billion. Citigroup ($2.93 billion) and Goldman Sachs ($2.11 billion) were next. Capital One ($1.40 billion) and U.S. Bancorp ($1.34 billion) followed. Below $1 billion in quarterly net income were #7 PNC Financial Services ($811 million), #8 Bank of America ($653 million), and #9 BNY Mellon ($631 million). Morgan Stanley was last and #10 with a net loss of -$94 million.



The 10 Largest USA Banks reported an average return on assets of +0.78% for the QE 3-31-12, which was a small decrease -0.03% from the prior QE 12-31-11 of +0.81%. The 1%+ Club: Capital One and U.S. Bancorp were the clear leaders with an ROA of +1.61% and +1.57%, respectively. Wells Fargo at 1.27% and PNC Financial Services at 1.12% were #3 and #4. BNY Mellon and JPMorgan Chase were next at +0.83%. Trailing were Citigroup +0.57%, Goldman Sachs +0.41%, and Morgan Stanley +0.38%. Finally Bank of America continues last at #10 at 0.00%, a decrease from the QE 12-31-11 of +0.06%.



Too Big To Stop Growing: Largest USA Banks Get Bigger

Largest USA Banks Ratings: U.S. Bancorp Tops, Goldman Sachs Last

Big Banks Profits Slow: Capital One, US Bancorp, Wells Fargo Shine

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Big Banks Profits Slow: Capital One, US Bancorp, Wells Fargo Shine

Only 3 of the 10 Largest USA Banks reported gains in net income from the prior year Q1 2011. The other 7 reported year over year decreases. Shining were Capital One (+38%), U.S. Bancorp (+28%), and Wells Fargo (+13%). Near break-even with small YoY decreases were Citigroup (-2%), PNC Financial (-2.5%), JPMorgan (-3%), and BNY Mellon (-6%). Those dropping more significantly were Goldman Sachs (-23%), and Bank of America (-68%). Last-place was Morgan Stanley (-110%), reporting the only quarterly loss at -$94 million.



Sequential quarterly net income results, the change from the prior quarter Q4 2011, were much better. 8 of the 10 Largest USA Banks reported increases with Capital One, Citigroup, and Goldman Sachs at  the top with +245%, +207%, and 108%, respectively. Next were PNC Financial (+65%), Morgan Stanley (+62%), JPMorgan (+44%), and BNY Mellon (+32%). Near break-even were Wells Fargo at +3% and U.S. Bancorp at -1%. Bank of America trailed with a -67% decrease in quarterly net income.



Largest USA Banks Ratings: U.S. Bancorp Tops, Goldman Sachs Last

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Too Big To Stop Growing: Largest USA Banks Get Bigger

Remember Too Big To Fail? That issue has been relegated to American history books. The trend is now Too Big To Stop Growing. The 10 Largest USA Banks reported aggregate total assets of $10.74 trillion for the QE 3-31-12. This is an increase of +$345 billion and +3.3% from the prior QE 12-31-11.

Capital One, Citigroup, JPMorgan Chase, and Bank of America reported the largest increases as the biggest got bigger. BNY Mellon reported the only decrease in total assets. The Capital One increase was due to the ING Direct acquisition completed during the quarter.  The PNC Financial Services increase was the result of the completion of the RBC Bank (USA) acquisition.

Largest USA Banks by Total Assets The Trillion Dollar Club: JPMorgan Chase continues #1 with total assets of $2.32 trillion, Bank of America is #2 with $2.18 trillion, Citigroup is #3 with $1.94 trillion, and Wells Fargo continues #4 with $1.33 trillion. Next are Goldman Sachs at $951 billion and Morgan Stanley at $781 billion. U.S. Bancorp $341 billion, Bank of New York Mellon $300 billion, PNC Financial Services $296 billion, and Capital One at $295 billion round out the top 10.



The 10 Largest USA Banks reported an average capital to assets ratio of 10.3% for the QE 3-31-12, about average for the 5 quarters reviewed. BNY Mellon and U.S. Bancorp reported the largest increases. Capital One, PNC Financial Services, Morgan Stanley, Bank of America, and Citigroup reported decreases

Largest USA Banks by Capital Ratio The 10%+ Club: PNC Financial Services, Capital One, BNY Mellon, Wells Fargo, U.S. Bancorp, and Bank of America all have capital ratios greater than 10%, which is very good. Citigroup, JPMorgan, Morgan Stanley, and Goldman Sachs are below 10%.



Largest USA Banks Ratings: U.S. Bancorp Tops, Goldman Sachs Last

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Largest USA Banks Ratings: Capital One & U.S. Bancorp Tops, Goldman Sachs Last

The Largest USA Banks have reported first quarter 2012 financial results. In the prior post, I reviewed the market cap of the American mega banks. In this post I rate them. There was little change from the prior quarterly ratings. There is one downgrade, Morgan Stanley drops from D- to F-. There are no upgrades.

Above Average Capital One and U.S. Bancorp are the leaders at A, followed by PNC Financial Services and Wells Fargo at A-. These 4 banks have moved positively beyond the 2008 financial crisis. Bank of New York Mellon is a respectable B+. Bank of America is next, perhaps a surprise to some, with a ranking of C+. Despite the negative media hype, capital is strong. However, return on assets is inadequate. Bank of America financial performance has been extraordinarily volatile and the ranking could move up or down in the next QE June 2012.

Below Average JPMorgan Chase follows at D, despite CEO Jamie Dimon's trumpeting of the JPM "fortress balance sheet" of $2+ trillion. However, financial position and performance are adequate. Next is Citigroup at D-, just below the median rating of D. Morgan Stanley dropped from D- to F-. Trailing the field is the once mighty Goldman Sachs at a dismal G+. Capital is questionable. The Average Rating for the 9 Largest USA Banks is C for this quarter, above the median score of D in the overall rating system.

Rating, Bank, Change
A    Capital One
A    U.S. Bancorp
A-   PNC Financial Services
A-   Wells Fargo
B+  BNY Mellon
C+  Bank of America
D    JPMorgan Chase
D-   Citigroup
F-   Morgan Stanley (down from D-)
G+  Goldman Sachs
C    Average

Largest USA Banks Rankings The Largest 10 USA banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 9 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with March 31, 2012 financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score varies each quarter.

Financial position strength, notably the capital ratio, is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from either internal or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominate intent of the ratings.

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

Goldman Sachs Earnings Spike, Revenues Surge

Goldman Sachs reported Q1 2012 financial results on Tuesday, April 17.

Goldman Sachs, the World's Most Hated Bankers, did in fact redeem themselves at least financially. CEO Lloyd Blankfein, regardless of his ongoing inept stewardship of this corrupt investment banking-house, had a good day.

As expected, earnings per share spiked. However, the surge was even higher than forecast to an incredible 8-quarter peak. This more than doubled EPS QoQ and YoY. This is on top of the prior quarter bounce. Redemption did draweth nigh.

Financial position is marginal and questionable without the $171.59 billion in unsecured long-term borrowings being counted as capital. The earnings reports are veiled. Goldman Sachs dispenses only the information they feel the throne should allow commoners to see. For example, a peek behind the royal veil at detailed financial position, a balance sheet, is not allowed.

The essence of this quarterly performance was revenues increased almost entirely across the board QoQ, but were actually down YoY. The notable quarterly decrease was -8% QoQ and -7% YoY in the investment management segment. Goldman Sachs explained the drop, "primarily due to lower management and other fees and lower transaction revenues". I'm very surprised the drop was so small. The decline is of course attributable to the corporate culture of not managing client wealth but confiscating through chicanery.

This goes back to March 2012 and former Goldman Sachs executive Greg Smith writing an op-ed in the New York Times. Smith called the working environment "toxic and destructive". He wasn't done, he expounded, "It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as 'muppets' sometimes over internal e-mail." This is creepy...

Largest USA Banks Ratings: U.S. Bancorp Leads, Goldman Sachs Last

Largest USA Banks: Ratings and Rankings

U.S. Bancorp is the sole leader at A, followed by PNC Financial Services and Wells Fargo at A-. These 3 banks have moved positively beyond the 2008 financial crisis. Bank of New York Mellon is 4th at a respectable B+. Bank of America is next at #5, a surprise to some, with a ranking of C+. Despite the negative media hype, capital is strong. However, return on assets is inadequate. Bank of America financial performance has been extraordinarily volatile and could move the ranking up or down in the next QE March 2012.
JPMorgan Chase is sixth at D, despite CEO Jamie Dimon's trumpeting of the JPM "fortress balance sheet" of $2.27 trillion. However, financial position and performance are adequate. Next are Citigroup and Morgan Stanley at D-, just below the median score of D. Trailing the field at #9 is the once mighty Goldman Sachs at a dismal G+. Capital is inadequate. The Average Rating for the 9 largest USA banks is C-, just above the median score of D in the overall rating system.

Rating, Bank
A    U.S. Bancorp
A-   PNC Financial Services
A-   Wells Fargo
B+  Bank of New York Mellon
C+  Bank of America
D    JPMorgan Chase
D-   Citigroup
D-   Morgan Stanley
G+  Goldman Sachs
C-   Average

Largest USA Banks Rankings The Largest 9 USA banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 9 USA banks rankings have been updated with a composite score. The ratings are based on the December 31, 2011 financial statements. The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. Financial position strength, notably the capital ratio, is weighted more than recent financial performance. The rating therefore is primarily a gauge of financial position, balance sheet, strength, which indicates the ability of the bank to withstand financial shock or a downturn in financial performance. The rating is secondarily a gauge of financial performance, both short-term and long-term.

Largest USA Banks Report Overall Poor Earnings QoQ and YoY

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Largest USA Banks Net Income QoQ The 9 Largest USA Banks reported an average +3.90% increase in quarterly net income QoQ for the QE 12-31-11, compared to the prior quarter QE 9-30-11. However, this is misleading. 6 of the 9 banks reported a decrease and the chart below indicates overall QoQ performance was poor. A significant portion of the average was attributable to Goldman Sachs at +357.76% QoQ, swinging from a quarterly net loss of -$393 million for QE 9-30-11 to a quarterly net income of +$1.01 billion for QE 12-31-11.
How the Largest Banks Performed QoQ:
Goldman Sachs +357.76%
U.S. Bancorp +6.05%
Wells Fargo +1.28%
JPMorgan Chase -12.53%
BNY Mellon -28.01%
PNC Financial Svcs -40.89%
Bank of America -68.05%
Citigroup -69.11%
Morgan Stanley -111.37%




Largest USA Banks Net Income YoY The 9 Largest USA Banks reported an average +2.96% increase in quarterly net income YoY for the QE 12-31-11, compared to the year-ago quarter QE 12-31-10. However, this is misleading. 6 of the 9 banks reported a decrease and the chart below indicates overall YoY performance was poor. A significant portion of the average was attributable to Bank of America at +260.05% YoY, swinging from a quarterly net loss of -$1.24 billion for QE 12-31-10 to a quarterly net income of +$1.99 billion for QE 12-31-11.
How the Largest Banks Performed YoY:
Bank of America +260.05%
U.S. Bancorp +38.60%
Wells Fargo +20.30%
Citigroup -11.00%
JP Morgan Chase -22.83%
BNY Mellon -31.12%
PNC Financial Svcs -39.88%
Goldman Sachs -57.56%
Morgan Stanley -129.90%




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Largest USA Banks Quarterly Net Income Drops

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Largest USA Banks Net Income Drops The 9 Largest USA Banks reported aggregate quarterly net income of $14.08 billion for the QE 12-31-11, which is the second lowest in the 5 quarters reviewed. This is a significant drop of -$8.82 billion and -39% from the prior QE 9-30-11. Bank of America and Citigroup reported the largest decreases. Goldman Sachs reported the largest increase.

Largest USA Banks Return on Assets Dip The 9 Largest USA Banks reported an average return on assets of 0.81% for the QE 12-31-11, which is the fourth lowest in the 5 quarters reviewed. This is a small decrease -0.04% from the prior QE 9-30-11. Goldman Sachs, Morgan Stanley, and PNC Financial Services reported the largest decreases. Bank of America reported the largest increase.

Largest USA Banks by Quarterly Net Income The Billion Dollar Club: Wells Fargo is #1 at $4.11 billion. JPMorgan Chase is #2 at $3.73 billion followed by volatile Bank of America with $1.99 billion. U.S. Bancorp, Citigroup, and Goldman Sachs are #4, #5, and #6 at $1.35 billion, $1.17 billion, and $1.01 billion, respectively. Next are PNC Financial Services $493 million and Bank of New York Mellon $478 million. Morgan Stanley is last and #9 with a net loss of -$250 million.



Largest USA Banks by Return on Assets The 1%+ Club: U.S. Bancorp continues leading at 1.51%, followed by Wells Fargo at 1.24% and PNC Financial Services at 1.16%. Bank of New York Mellon 0.88% and JPMorgan Chase 0.85% are #4 and #5, respectively. Next are #6 Citigroup 0.59%, #7 Morgan Stanley 0.51%, and #8 Goldman Sachs 0.48%. Finally Bank of America continues at #9 with an "improved" 0.06%, a 6-quarter high. This is the first positive ROA for Bank of America since the QE 6-30-10.



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