BankThe largest U.S. banks are constantly under regulatory pressure to simplify their organizational structures especially following the 2010 Dodd-Frank Act. How complex are their operations?

Subsidiaries

  • JPMorgan Chase & Co., the largest U.S. bank by assets, has 3,400 subsidiaries as of March 2014, which is relatively stable from the number in 2012.
  • Morgan Stanley, the sixth-largest bank, has 2,900 units as of 2013, the same number as two years ago.
  • Bank of America Corp. had 1,736 subsidiaries at the end of last year, 86 fewer than in 2013, which was unchanged from 2012.
  • Wells Fargo & Co. has 1,273 subsidiaries as of December 2013, the fewest of the six largest banks.
    TheseĀ  subsidiaries can often be interconnected through complex connections. For example, Banc One Capital Holdings LLC, a wholly owned subsidiary of JPMorgan, owns BOCP Holdings Corp., which in turn owns Tax Credit Acquisitions LLC. Tax Credit is the owner of Banc One Housing Investors GTC-1A LLC, which owns a 50 percent stake in BOTCF I LLC. That company owns a 48 percent stake in ORC Tax Credit Fund 1 LP, which in turn has eight subsidiaries, including one named Faith Village LP. Faith Village is a low-income housing project in Columbus, Ohio.
    Overhauling Plans

Resolution Plans

JPMorgan, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley, along with six other firms, submitted resolution plans to simplify the holding company structure of their respective banks but their plans were deemed insufficient last August by the Fed. According to the Fed, the new blueprints needed to ensure that banks can be wound down without systemic contagion.

For more, read the following article in Bloomberg.
http://www.bloomberg.com/news/articles/2015-07-06/u-s-banks-keep-thousands-of-units-after-push-to-simplify-them

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