A new king of the jungle in Wall Street, JP Morgan.

JP Morgan building in front of Wall Street stock exchange in 1914.

Esential interactive graphic courtesy The New York Times, which shows the change in size of American banks by market capitalisation betwen october 2007, just before this current crisis, and october 2009.

October 2007 US banks market cap (source: nytimes.com)

1. Look at overall Picture, how is becoming minuscule until March 2009 and as subsequently recovered by stock prices apreciation and also capital increases.

2. In relacion to Citigroup, which was the largest bank in the world in 2007, and which was reduced to near 0 in March 2009. Only the recovery in stock but especially the capital increases have led to its current size, but far from number 1. In fact, present market cap is about $23 billion U.S.

3. The number 2 in 2007, Bank Of America, is now worth $141 billion, mainly due to its huge capital increases.

4. AIG in fact, no longer exists.

5. And after all this storm, who is the new king of the jungle … … ……….., JP Morgan. And the number 2 is Goldman Sachs.

6. Banks disappeared:  Two investment banks competitors, Lehman Brothers and Bear Stearns. And also large commercial banks have disappeared, Wachovia, or Washington Mutual.

2009 october US banks market cap (source: nytimes.com)

As you will see the interactive chart, the total capitalization of U.S. banks in September 2009 is $947 billion, the October 2007 was $ 1.87 trillion, so more of $923 billion destruction, because there have been many capital increases. See the post, “the banks and the kiss of death“.

As I wrote some time ago, ( “JP Morgan did the same in the banking panic of 1907“) John Pierpont Morgan, in another similar banking crisis in 1907. In this period, some competitors was devoured by JP Morgan.