4 big banks face break-up threat

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Two American and two European firms.

The New York Post reports that investors are circling around some of the world’s largest banks, pushing for a breakup into as many as four different companies, as expensive regulations from the US Federal Reserve make 'too big to fail' a heavy burden for shareholders.

While JPMorgan — the largest US bank by assets — has been called upon to split up, Bank of America, Deutsche Bank and HSBC are also in the too-big-to-fail camp and shareholders say they’re getting less bang for their buck, Ryan Mendy, chief operating officer of analyst firm The Edge Group, told the newspaper.

And those banks could get broken up by 2018, he added.

'At the end of the day, who cares about the bank as it is?' Mendy said. 'It’s about the shareholder, it’s about the pension funds'.

Investors would get the most value if banks like JPM, HSBC and other gargantuans were broken up into a commercial bank for lending, an investment bank and an asset management company, Mendy said.

To access the complete New York Post article hit the link below:

Investors want the world’s largest banks to be sliced up

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