Report: Market Valuation of 14 Banking Giants Shed $635 Billion This Year

The world’s largest banks lost a considerable amount of market valuation amid the Covid-19 pandemic, according to a new report that estimates financial incumbents lost $635 billion. Between December 2019 and August 2020, the market caps of 14 major banking institutions lost upwards of 30-50% during the time period.

A newly published report written by Buyshares and the researcher Justinas Baltrusaitis, shows that during the first half of 2020, the world’s banks lost a considerable amount of market capitalization. Buyshares data shows that 14 select “major global banks” lost a combined total of $635.33 billion in market capitalization this year.

The biggest loser was Wells Fargo, which lost roughly -56.26% during the time period. Spain’s Banco Santander came in second place, losing -46.16% of its aggregate valuation.

Stats show that while Japan-based Mizuho Financial Group only lost 11%, the American bank, JP Morgan Chase saw a -30.16% drop in value in H1. The major losses from all 14 banks worldwide were significant drops, the Buyshares report highlights.

Report: Market Valuation of 14 Banking Giants Shed $635 Billion This Year

But researchers also stress that it “could have been much worse if there was no intervention from central banks.” Financial incumbents curbed disaster by receiving massive stimulus from the Federal Reserve. Additionally, the research says that regulators easing restrictions on liquidity, reserves, and capital “proved beneficial.”

Data shows that American banks took the largest hits, but JP Morgan Chase still has a decent market cap ($305.44 billion) today. Chinese banks followed American banks and both groups saw the biggest losses in February, as the start of the pandemic began to shake markets.

Report: Market Valuation of 14 Banking Giants Shed $635 Billion This Year

Meanwhile, the American banking cartel and the nation’s wealthiest 1% have been accused of fleecing $50 trillion from the bottom 99% during the last few decades. The accusation stems from a working paper written by Kathryn Edwards and Carter C. Price from the RAND Corporation called “Trends in Income.”

According to Price and Edwards calculations, during the course of four decades between 1975 through 2018, the estimate was around $47 trillion at the end of the year. The estimate crossed the $50 trillion zone in early 2020 and the disparity grew by $2.5 trillion per year.

The wealth disparity has stemmed from America’s political class (bureaucrats), a few generational demographics (statists), and the modern-day money changers (U.S. banks and the Fed).

Robert Kiyosaki, the author of the best-selling book “Rich Dad, Poor Dad,” recently tweeted about the wealth inequality and said crypto-assets like bitcoin will help younger generations improve the situation.

“Boomers had it easy,” Kiyosaki said. “Plenty of jobs-low cost real estate-rising stock market. Millennials have it hard. 9/11, 2008 real estate crash, [and] now Covid-19. Good news. Millennials [are] tech-savvy. Boomers [are] not. Bitcoin-block chain-digital currencies give millennials head start into the future.”

At press time, the market capitalization of all 7,600+ digital currencies is around $336 billion. The 14 banks that lost market cap saw losses close to 2x the size of the crypto economy. Still, JP Morgan Chase’s valuation is just a touch less than the crypto economy’s entire market capitalization.

Despite the banker’s losses, not many people on social media and forums (if any at all) are too concerned with the world’s megabanks after they have been given a lifeline of dollars from the Fed.

What do you think about the 14 banks losing $635 billion in market cap in 2020? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Buyshares data

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Show comments

In Case You Missed It

Mastercard Launches Digital Currency Testing Platform for Central Banks

Mastercard has launched a digital currency testing platform aimed at helping central banks test their digital currencies. The system will also demonstrate how consumers can use central bank digital currencies to pay for goods and services wherever Mastercard is accepted ... read more.

Despite Warnings from Regulators, the Ethereum Fueled Pyramid Scheme Forsage Thrives

While Ethereum has seen a number of benefits from the decentralized finance (defi) movement and initial coin offerings (ICOs), more recently individuals have been leveraging ether for pyramid schemes and matrix cycler programs. One particular scheme crypto enthusiasts are discussing ... read more.

Working in the Cryptocurrency Industry as a Woman

It seems there is a lot of turmoil happening in the world, as the year 2020 keeps giving and giving. From natural disasters, a global pandemic, and race wars and riots, everyone is wondering what will happen next. However, something ... read more.

The $700 Million Wallet Crack: Bitcoin's 7th Largest Address Is Under Constant Attack

During the last two years, hackers have been trying to crack the seventh-largest bitcoin wallet, an address that holds 69,370 BTC or $712 million using today’s exchange rate. According to the CTO of the cybercrime intelligence firm, Hudson Rock, the ... read more.

Sushiswap Creator Returns $14 Million After Community Cries Exit Scam

One week after the Sushiswap creator was accused of an exit scam, he has returned all of the coins he cashed out. The anonymous creator also apologizes to the community, including to Binance which came under fire for listing the ... read more.

European Union Seeks Strict Regulation of Crypto and Stablecoins in New Draft Law

The European Commission, the executive arm of the E.U., has drawn up regulation to tightly monitor cryptocurrencies it considers "significant", including asset-backed stablecoins like Facebook's libra. Euractiv, a European news outlet, first reported the news on Sept.10, citing a leaked ... read more.

IRS to Pay $625K to Crack Monero, Crypto Proponents Scoff at Contract

The U.S. Internal Revenue Service (IRS) wants to pay a contractor $625,000 if they can crack layer-two privacy schemes and the privacy-centric crypto asset monero (XMR). The tax agency says that the entity has “limited investigative resources” for tracing these ... read more.

Morgan Stanley Strategist Recommends Bitcoin as Central Banks Ramp Up Money Printing

Morgan Stanley Investment Management's chief strategist and head of emerging markets has recommended bitcoin as an alternative investment to stocks amid central banks' massive money printing policies. He says that alternative assets, like gold and cryptocurrency, could keep doing well ... read more.

Bitcoin Hashrate Ramps to 130 Exahash Amid Next-Generation Miner Shortage

Regional reports from China have highlighted that a number of major Chinese ASIC mining rig manufacturers have sold out of their next-generation model stock. The shrinking supply of high-performance machines may be due to the shortage of 7nm and 8nm ... read more.

Huge 'Bitcoin Tram' Ad Campaign and 20 Billboards Flood Hong Kong's Financial District

A massive Bitcoin ad campaign has launched in the heart of Hong Kong's financial district, featuring three Bitcoin trams and 20 matching billboards. It is a community initiative coordinated by the Bitcoin Association of Hong Kong, an organization with more ... read more.

Tether Recovers $1 Million USDT Sent to Wrong Defi Address by Chinese Traders

Tether has recovered and returned $1 million worth of USDT to a group of Chinese traders who, in error, sent the funds to a wrong decentralized finance (defi) address. On September 8, the group, going under the moniker 'Bill,' "accidentally" ... read more.

Apple Censors Some Cryptocurrency and Defi Features of Coinbase App

Apple Inc. has censored some cryptocurrency features of the Coinbase app. Specifically, Apple has blocked Coinbase from adding to its iOS app the ability to earn money using cryptocurrency and access to decentralized finance (Defi) apps. Apple vs. Coinbase Cryptocurrency ... read more.

Rapper TI Cryptocurrency Fraud: Charged and Fined $75,000 by SEC

Rapper TI and four other people, including film producer Ryan Felton, have been charged by the U.S. Securities and Exchange Commission (SEC) over fraudulent token sales. TI, or Tip as the rapper is also known, is also fined $75,000 by ... read more.

The Moss Piglet Dilemma: Paypal Bans Payments to Merchants Using the Word ‘Tardigrade’

The popular payment provider Paypal has been known for cutting off a number of merchants and organizations over the years. This week, the public found out that Paypal has been censoring merchants that sell items related to the name "tardigrade" ... read more.

Sushiswap's 2 Million Token Airdrop: Founders Face Accusations of 'Making Defi a Joke Again'

Sushiswap's new leader and FTX CEO Sam Bankman-Fried tweeted on September 12 that the promised 2 million token airdrop would go on as scheduled. The process was expected to last up to two hours or less depending on network congestion. ... read more.

Gold prices held steady on Wednesday as investors awaited the outcome of the U.S. Federal Reserve’s policy meeting, hoping for details of the central bank’s plans to balance interest rates against its inflation target.

Spot gold was up 0.1% to $1,957.45 per ounce by 0255 GMT. U.S. gold futures were steady at $1,966.20.

“People are keeping on the sidelines because of the Fed announcement coming up later today,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

“People are awaiting for more clarity on what monetary tools the Fed is expected to use to support inflation above 2%.”

The Fed decision is due at 1800 GMT, followed by a news conference by Chairman Jerome Powell half an hour later.

The U.S. central bank last month adopted a more accommodative approach to inflation and pledged to keep interest rates low for longer.

“Markets will want to see if the Fed will modify its language as some expect, perhaps something to the effect that it will keep rates low for a period of time (say three years) or maybe do the same thing with its inflation language,” said Edward Meir, an analyst at ED&F Man Capital Markets, in a note.

“But, we doubt the Fed will lock itself into such a fixed language ahead of a potential turn in the U.S. economy.”

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion. Gold also is used as a hedge against inflation and currency debasement.

Offering support to gold, the dollar index eased 0.1% against a basket of major currencies.

U.S. House of Representatives Speaker Nancy Pelosi said Democrats were open to delaying an October recess to get a deal with Republicans on a new coronavirus aid bill.

Elsewhere, silver fell 0.1% to $27.20 per ounce, platinum dropped 0.7% to $971.11 and palladium slipped 1.4% to $2,375.83.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

People who sleep late at night, kindly take note. Researchers have found that after a night of shorter sleep, people react more emotionally to stressful events the next day -- and they don't find as much joy in the good things.

For the study, published in the journal Health Psychology, the research team looked at how sleep affects our reaction to both stressful and positive events in daily life.

"When people experience something positive, such as getting a hug or spending time in nature, they typically feel happier that day," said study researcher Nancy Sin from the University of British Columbia in Canada.

"But we found that when a person sleeps less than their usual amount, they don't have as much of a boost in positive emotions from their positive events," Sin added.

Using daily diary data from a national US sample of almost 2,000 people, the research team analysed sleep duration and how people responded to negative and positive situations the next day.

The participants reported on their experiences and the amount of sleep they had the previous night in daily telephone interviews over eight days.

People also reported a number of stressful events in their daily lives, including arguments, social tensions, work and family stress, and being discriminated against.

When people slept less than usual, they responded to these stressful events with a greater loss of positive emotions.

This has important health implications: previous research by Sin and others shows that being unable to maintain positive emotions in the face of stress puts people at risk of inflammation and even an earlier death.

Chronic health conditions -- such as heart disease, diabetes and cancer -- are prevalent among adults, especially as we grow older.

Past research suggests that people with health conditions are more reactive when faced with stressful situations, possibly due to the wear-and-tear of the physiological stress systems.

"We were also interested in whether adults with chronic health conditions might gain an even larger benefit from sleep than healthy adults," said Sin.

"For those with chronic health conditions, we found that longer sleep -- compared to one's usual sleep duration -- led to better responses to positive experiences on the following day," Sin revealed.

The research team hoped that by making sleep a priority, people can have a better quality of life and protect their long-term health.

Defending champion Egan Bernal has withdrawn from the Tour de France ahead of stage 17, his Ineos Grenadiers team said on Wednesday.

Bernal, whose hopes of winning the race fell away when he cracked in Sunday’s 15th stage, was dropped from the main bunch in the ascent to Saint-Nizier, suffering from back pains in Tuesday’s 16th stage won by Lennard Kaemna. [nL8N2GC5AJ]

Bernal had said that compensating for his back led to some discomfort in his knee.

“This is obviously not how I wanted my Tour de France to end, but I agree that it is the right decision for me in the circumstances,” Bernal said in a statement https://www.ineosgrenadiers.com/article/egan-bernal-withdraws-from-the-tour-de-france.

“I have the greatest respect for this race and I am already looking forward to coming back in the years ahead.”

The 23-year-old will focus on his recovery from the Tour, and reset his goals for the rest of the season, his team said.

They did not specify the reason for his withdrawl.

“We’ve taken this decision with Egan’s best interests at heart,” Ineos team principal Dave Brailsford said.

“Egan is a true champion who loves to race, but he is also a young rider, with many Tours ahead of him and at this point, on balance, we feel it is wiser for him to stop racing.”

The Colombian had pulled out of the Criterium du Dauphine with back pains last month.

Last year, Bernal became the youngest rider to win the Tour de France in 110 years.

Sept. 16, 2020, 10:29 AM UTC

By The Associated Press

SEATTLE — William H. Gates II, a lawyer and philanthropist best known as the father of Microsoft co-founder Bill Gates, has died at 94.

Gates died peacefully Monday at his beach home in Washington state from Alzheimer's disease, the family announced Tuesday.

In an obituary the family credited the patriarch with a “deep commitment to social and economic equity,” noting that he was responsible for the Bill & Melinda Gates Foundation's first efforts to improve global health as well as his advocacy for progressive taxation, especially unsuccessful efforts to pass a state income tax on the wealthy in Washington.

“My dad’s wisdom, generosity, empathy, and humility had a huge influence on people around the world,” Bill Gates wrote in a tribute.

Born in 1925, Gates Sr. grew up in Bremerton, Washington, where his parents owned a furniture store. He joined the Army following his freshman year at the University of Washington and was en route to Japan when it surrendered in 1945.

He served a year in war-torn Tokyo before returning to the United States and resuming his education, his family said. After earning his law degree in 1950, he began working in private practice and as a part-time Bremerton city attorney.

Bill Gates Sr., father of Microsoft Inc. founder Bill Gates, speaks during an interview with Bill Gates in Alexandria, VA.Andrew Harrer / Bloomberg via Getty Images file

He formed a Seattle law firm with two other partners that eventually became Preston Gates and Ellis — now known as K & L Gates, one of the world's largest law firms. The firm was one of the first to work with the region's technology industry.

Gates Sr. met his first wife, Mary Maxwell, at the University of Washington. They had two daughters and a son — Gates Jr. — and remained married until her death in 1994. Two years later he married Mimi Gardner, then the director of the Seattle Art Museum, with whom he spent the last quarter-century of his life.

“When I was a kid, he wasn’t prescriptive or domineering, and yet he never let me coast along at things I was good at, and he always pushed me to try things I hated or didn’t think I could do (swimming and soccer, for example),” Gates Jr. wrote in the tribute. “And he modeled an amazing work ethic. He was one of the hardest-working and most respected lawyers in Seattle, as well as a major civic leader in our region.”

That civic work included serving as a trustee of the Greater Seattle Chamber of Commerce, Planned Parenthood and United Way, and as a regent of the University of Washington, where he led fundraising drives. He also served as the president of the state and local bar associations and in the leadership of the American Bar Association, helping create diversity scholarships and promoting legal services for the poor.

“Bill Sr. was a person who cared about the plight of many, and he had the resources and never-ending civic commitment to do something about it,” Washington Gov. Jay Inslee said in a statement. “He made the choice to use his wealth and influence to advocate for and improve equity in our communities.”

Gates Sr. was a towering figure by reputation and in person — he stood 6-foot-7 tall — and his counsel was often sought. Former Starbucks Chairman Howard Schultz has said that when he was struggling to raise the money to buy the six-store coffee chain in 1987, Gates Sr. stepped in to rescue him from a rival buyer — not only by investing, but by personally taking Schultz to visit the rival, demanding as he loomed over the rival's desk: “You are going to stand down and this kid is going to realize his dream. Do you understand me?”

Gates retired from law in 1998 and took on prominent roles with the Gates Foundation, helping launch its work in global health.

The family said that due to restrictions related to the COVID-19 pandemic, a memorial service would be held later.

The Associated Press