Astonishing story on which banks made money last year. From Forbes.

Trading Revenue at U.S. Bank Holding Companies in 2009

All data from December 2009 FR Y-9C filings. Dollar amounts in millions.

    Total Assets, Dec. 31, 2009 Trading Revenue Pretax Income As a Percentage of Pretax Income
1 Goldman Sachs Group $849,278 $23,234 $19,451 119.4%
2 Bank of America 2,224,539 12,067 4,592 262.8%
3 JPMorgan Chase 2,031,989 9,870 16,149 61.1%
4 Morgan Stanley 771,462 7,279 857 849.4%
5 Citigroup 1,856,646 4,448 (7,799) N/R
6 Wells Fargo 1,243,646 2,674 17,998 14.9%
  Top 6 Aggregate   59,572 51,248 116.2%
7 Bank of New York Mellon 212,336 1,032 2,626 * 39.3%
8 State Street 156,756 598 2,527 23.7%
9 Northern Trust 82,142 508 1,255 40.5%
  Trust and Custody Banks Aggregate   2,139 6,408 33.4%
10 MetLife 539,314 361 (2,798) N/R
11 GMAC 172,313 173 (7,939) N/R
      534 (10,737) N/R
12 PNC Financial Services Group 269,922 170 3,324 5.1%
13 U.S. Bancorp 281,176 163 2,632 6.2%
14 Fifth Third Bancorp 113,380 125 767 16.3%
15 Sun Trust Banks 174,166 100 (2,450) N/R
  Banks Nos. 12 to 15 Aggregate   558 4,273 13.1%
  Remaining 971 Bank Holding Companies Aggregate   1,399 (19,284) N/R
  All Bank Holding Companies (986 banks) Aggregate   64,202 31,908 201%

* Excludes $4.8B in securities losses related to restructuring of Bank of New York Mellon’s investment securities portfolio in Q3 2009. “N/R” = Not relevant.

Trading profits–better known in the proposed financial reform legislation as proprietary or “prop”–trading are the target of former Fed chief Paul Volcker’s crusade to prohibit or severely limit bank holding companies that have public deposits from this speculative activity.

Wall Street’s gravy train is in danger of being hijacked. Investors beware; the Volcker rule is the single biggest threat to the share price of the oligopoly. Another threat is the cap on future growth of the oligopoly.

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