JPMorgan to be biggest bank in the US?

8 July 2011

JPMorgan is on the verge of becoming the biggest bank in the US, after shrinking by a lesser amount than its main rival.

The institution could leapfrog Bank of America (BofA) to become the largest lender in the country due to the poor acquisitions saddled on BofA by former chief executive Ken Lewis, Reuters reports.

According to the news agency, however, size does not necessarily translate to profitability or increased market value.

Gary Townsend, chief executive of asset manager Hill-Townsend Capital, said: "Big is more a burden than it is a bragging right."

JPMorgan is already the most valuable bank in the stock market - boasting equity that is worth nearly double that of BofA - and has been coming up close to its competitor in the size stakes over the last three quarters.

The institution has been established for more than 200 years and currently offers solutions to clients in more than 100 countries across the globe.

By Asim Shah

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