In 1987, the former-Chemical Bank had $61 billion in assets. In a series of mega-mergers orchestrated by Chemical Chairman and CEO Walter Shipley, four of the largest domestic banks were with J.P. Morgan. Chemical’s $61 billion balance sheet in 1987 eventually became part of the $2.5 trillion J.P. Morgan Chase balance sheet in 2015.
Former Chemical Vice Chair Richard S. Simmons’ quote in a June 1987 New York Times article was prophetic yet a touch understated. The impact of ending Glass Steagall and the inevitable mergers would result in five big domestic banks each with $500 billion in assets which Simmons believe would be hard to wrap your brain around.
The Chemical executive (Richard Simmons) predicts that by the mid-1990’s there will be five major United States banks with assets of about $500 billion each. Assets of Citicorp, the nation’s largest bank, now total $193 billion.
According to Simmons, ”It’s hard to grapple with the concept of a very big bank,” he said. ”But when we wake up and realize that financing is being controlled by a cartel of foreign banks, the American people are going to be very unhappy.”
So what does that make banks with $2.5 trillion sheets. Hmmm…