The financial landscape is undergoing a significant transformation as giant investment companies increasingly dominate, managing assets that rival the economies of major countries. In 2008, U.S. banks and fund managers were approximately equal, each managing around $12 trillion in assets. However, by 2024, traditional asset managers, private-fund managers, and hedge funds have surged ahead, controlling about $43.5 trillion, nearly double the banks' $23 trillion. This shift is highlighted by the presence of major players like BlackRock and State Street, whose asset management scale now exceeds the economy of Germany. This growing dominance of giant funds over traditional banks is reshaping Wall Street, with implications for both market dynamics and systemic risk.
Giant investment companies are taking over the financial system, with funds rivaling the economies of many large countries https://t.co/Q7ImP9AdNo From a systemic risk perspective, this creates a more stable system in principle, so long as derivatives use doesn't get too large
The rise of the giant fund: How companies like BlackRock and State Street are taking over Wall Street - with some managing assets worth more than the German economy https://t.co/t6mgfaxsp7 https://t.co/1Du8dEaLAT
"Top firms now control sums rivaling the economies of many large countries." https://t.co/OxxsLzjcsd https://t.co/9vMN0zlaWo
"Move Aside, Big Banks: Giant Funds Now Rule Wall Street" via @WSJ https://t.co/ciag2yJ9FA
In 2008, U.S. banks and fund managers were roughly neck and neck at about $12 trillion of assets. Today, traditional asset managers, private-fund managers and hedge funds control about $43.5 trillion, nearly twice the banks’ $23 trillion. https://t.co/fNLFk8bctK
Giant investment companies are taking over the financial system, with funds rivaling the economies of many large countries https://t.co/z0olysqbbS https://t.co/z0olysqbbS
Move Aside, Banks: Giant Funds Now Rule Wall Street @WSJ https://t.co/tR5dgOUhib
Wall Street has all but abandoned Wall Street https://t.co/9BdLIP0KlY https://t.co/9BdLIP0KlY
shadow banks taking over https://t.co/sjHSFvMoOO
Nice, deceptively simple, survey of banking versus markets >> Giant investment companies are taking over the financial system, with funds rivaling the economies of many large countries https://t.co/4eINcq808k via @WSJ
What are big banks meant to do with hundreds of billions in excess deposits when loan demand is weak? #JPMorgan and #BankofAmerica had very different strategies: One boosted profits, the other caused headaches >> https://t.co/HFUUbwyMRg via @opinion https://t.co/d7uEy8iGo2
"In financial markets, a lot of conversations are about public companies, but the reality is that in the US, 87% of firms with revenue greater than $100 million are private." - Torsten Sløk https://t.co/5SRWLEucdG