For the first time ever, the market cap of America's "Big Four" banks topped $1 trillion having surged 30% since Donald Trump was elected president. While to some this is cause for celebration, we note that the last time a nation's "big four" banks topped $1 trillion in market cap did not end well…
As Bloomberg notes, the four biggest U.S. banks were worth the most on record versus China's "Big Four" this month, as JPMorgan, Wells Fargo, Bank of America, and Citigroup were worth over $250 billion more than Industrial & Commercial Bank, China Construction Bank, Bank of China, and Agricultural Bank of China combined.
The four Chinese banks, the world's most profitable, were worth about the same as the U.S. foursome as recently as June.
However, as the chart above shows, while the American quartet's combined market value closed above $1 trillion for the first time last month, China achieved that goals in June 2015… and it did not end well.