NEW YORK (TheStreet) -- The four 'too big to fail' money center banks became bigger in the third quarter controlling 44.34% of the $14.6 trillion of assets in the banking system, up from 43.95% in the second quarter.
JPMorgan (JPM) increased total assets to $2.12 trillion or 14.5% on the total, while Bank of America (BAC) decreased assets to $1.62 trillion or 11.1% of the total. Wells Fargo (WFC) stayed in third place increasing assets to $1.38 trillion or 9.5%. Citigroup (C) stayed in fourth place raising total assets to $1.35 trillion or 9.2%.
Bank of America ($15.73) set a new multi-year high at $15.98 on Nov. 25, maintains a hold rating, and is 27.1% overvalued. Since the end of the second quarter of 2008 this 'too big to fail' money center bank has reduced assets by $164.7 billion to a total of $1.62 trillion, which is 11.1% of the total assets in the banking system. My semiannual value level is $10.09 with a quarterly pivot at $15.30 and annual risky level at $17.07.
Citigroup ($52.62) set a multi-year high at $53.68 on Nov. 25, maintains a hold rating, and is 45.9% overvalued. Since the end of the second quarter of 2008 this 'too big to fail' money center bank has increased assets by $21.7 billion to a total of $1.35 trillion, which is 9.2% of the total assets in the banking system. My semiannual value level is $47.14 and a quarterly pivot at $52.56 and monthly risky level at $55.23.JPMorgan ($56.98) set a multi-year high at $58.14 on Nov. 25, maintains a hold rating, and is 28.6% overvalued. Since the end of the second quarter of 2008 this biggest of the 'too big to fail' money center bank has become even bigger by increasing assets by $315.9 billion to $2.12 trillion, which is a way too big controlling 14.5% of the total assets in the banking system. My semiannual value level is $50.37 with a quarterly risky level at $59.44. Wells Fargo ($44.18) set a multi-year high at $44.78 on July 23 and the recent high has been $44.74 on Nov. 26. The stock maintains a hold rating and is 23.0% overvalued. Since the end of the second quarter of 2008 this 'too big to fail' money center bank has increased assets by $40.7 billion to $1.38 trillion, which is 9.5% of the total assets in the banking system. My semiannual value level is $40.04 with a quarterly risky level at $48.05.
Comparing Third Quarter Data To Second Quarter DataTotal Assets in the banking system increased 1.3% sequentially in the third quarter of 2013 to $14.6 trillion, which is a year over year gain of 2.6%. Residential Mortgages on the books of the banks declined by $13.7 billion in the third quarter to $1.84 trillion down 0.7% sequentially and 2.5% year over year. It appears that mortgage credit guidelines remain too tight, and that demand for mortgages has declined as rates rise. Mortgage originations for 1 to 4 family residential real estate loans declined by 30.1% to $136.8 billion sequentially as the rise in interest rates reduced demand for mortgage refinancings. Noninterest income from the sale, servicing and securitization of mortgages declined by $4.0 billion 45.2% lower than a year ago. Nonfarm Nonresidential Real Estate Loans rose by $9.2 billion in the in the third quarter to $1.09 trillion which is a sign that banks feel safer lending to builders of office buildings, strip malls, condos and apartments, rather than single-family homes. This portion of CRE loans is up 0.8% sequentially and 3.3% year over year.
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