July 23, 2012
As they rapidly gobbled up the economy, the biggest U.S. banks created more 10,000 subsidiaries in ways so as to escape taxes and tighter regulation, according to a Federal Reserve study. The Fed study included the banks’ overseas entities. That these banks are not U.S. banks, but really international banks, is clear when one realizes that, for many of the banks, more than half of the legal entities they own are located outside the U.S.
JPMorgan & Chase Co., the largest lender in the United States, has almost 3,391 subsidiaries. Goldman Sachs Group Inc., Morgan Stanley and Bank of America Corp. each have more than 2,000, while Citigroup Inc. has 1,645.