Too Big to Fail
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Too Big to Fail


Bye-Bye, Bad Loans, Hello Big Bank Stocks

Sometimes, size really does matter. During the financial crisis the US government declared that 19 financial institutions were systemically important, or “too big to fail.” And they backed it up with the $700B Troubled Assets Relief Program (TARP). As a result, those 19 institutions can now benefit from a view that they have an implicit US Government guarantee. That perception lowers their risk profile and borrowing costs, delivering an immediate implied subsidy of as much as $83 billion a year.[1] The six largest banks control 67% of all U.S. banking assets, and Bank of America accounted for about a third of all business loans by itself last year. If these institutions were “too big to fail” back in 2008, then now they may be “too colossal to collapse.” And that could be a gigantic advantage. See more
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Create your own customizable basket of up to 30 stocks or ETFs for just $9.95.
Motif Index 1 YR Return
Too Big to Fail Benchmark
With this Motif, you can buy the following basket of stocks for just $9.95:
Weight Segment & Stocks Symbol 1 MO / 1 YR Return
51.8% Retail Banks 3.4%
19.4% Wells Fargo & Co. WFC 4.1%
12.2% U.S. Bancorp USB 1.3%
6.5% Capital One Financial Corp. COF 3.2%
5.7% PNC Financial Services PNC 10.7%
4.0% BB&T Corporation BBT 5.2%
1.0% SunTrust Banks Inc. STI 12.7%
1.0% Fifth Third Bancorp FITB 4.7%
1.0% Regions Financial Corp RF 2.4%
0.9% KeyCorp KEY 1.1%
30.5% Financial Conglomerates 4.6%
16.5% JP Morgan Chase & Co. JPM 14.2%
5.3% Bank of America Corp. BAC 3.6%
5.3% American Express Co. AXP 21.4%
3.4% Citigroup Inc C 0.5%
9.7% Investment Banks 0.1%
6.9% The Goldman Sachs Group Inc. GS 1.4%
2.8% Morgan Stanley MS 3.0%
6.1% Custodian Banks 5.9%
3.8% The Bank of New York Mellon Corp. BK 11.6%
2.3% State Street Corporation STT 3.4%
2.0% Insurance Providers 5.7%
1.0% American International Group Inc. AIG 16.6%
0.9% MetLife Inc MET 6.3%