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Too Big to Fail

32.7%
2.3%
3.0%

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
32.7%
2.3%
3.0%
Invest in Thematic Portfolios
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
54.2% Retail Banks 33.3%
17.9% Wells Fargo & Company WFC 14.8%
14.2% U.S. Bancorp USB 35.8%
9.6% PNC Financial Services PNC 41.6%
6.4% BB&T Corporation BBT 42.5%
1.6% Capital One Financial Corporation COF 43.0%
1.2% KeyCorp KEY 63.2%
1.2% Regions Financial Corporation RF 80.7%
1.1% Fifth Third Bancorp FITB 61.8%
1.0% SunTrust Banks Inc. STI 50.4%
28.4% Financial Conglomerates 48.1%
15.3% JP Morgan Chase & Co. JPM 55.5%
5.5% Bank of America Corporation BAC 56.9%
5.3% American Express Company AXP 24.3%
2.3% Citigroup Inc. C 33.2%
9.3% Investment Banks 59.3%
6.5% Goldman Sachs Group Inc. (The) GS 56.1%
2.8% Morgan Stanley MS 66.9%
4.2% Insurance Providers 22.5%
3.2% American International Group Inc. AIG 19.7%
1.0% MetLife Inc. MET 31.2%
3.9% Custodian Banks 37.2%
3.0% The Bank of New York Mellon Corp. BK 33.3%
0.9% State Street Corporation STT 49.3%

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