Commentary - 10/14/08

Financial Oligarchy - So What's New?

I don't mean to be so cynical, but it comes with the territory. The news article in this morning's Kansas City Star, Federal Reserve bank president urges balance in dealing with crisis says:

Federal Reserve officials must be wary of concentrated risk and the rise of a new “financial oligarchy” as banks merge during the credit crisis, Kansas City Fed President Thomas Hoenig said today.

Regulators, while weighing changes to oversight, should consider “the degree to which we should be concerned and address the rising levels of concentration of financial resources among, if you will, a financial oligarchy that will wield vast powers in the future,” Hoenig said at a meeting of the Institute of International Bankers in Washington.

There's that word oligarchy. In a previous commentary There's No Place To Run, Jim Rogers!, I wrote that today, an individual's natural self-defenses has been slowly dis-armed by the "Ultimate Revolution" strategy expressed in Aldous Huxley's 1962 presentation [To Listen! or Transcript] at a Berkeley, California conference:
That we are in process of developing a whole series of techniques which will enable the controlling oligarchy who have always existed and presumably will always exist to get people to love their servitude.
So this is the word "oligarchy" being used, this time 46 years ago. You have only to read recent headlines about our financial crash to understand the results of these efforts. Just like the Panic of 1907, our own financial panic is going to re-align financial powers and I really don't think we're going to like the results.

Today's Bloomberg headline Paulson Plans to Invest in `Thousands' of U.S. Banks shows the first step in this new oligarchy. The Treasury is now deciding who wins and who loses, rather than the marketplace. One doesn't have to think too hard to know exactly where this will lead. As you click on each bank, you'll see the Major Holders and ultimate beneficiaries of these actions. You'll also see just what an incestuous group of players that make up these major money center banks.

The Treasury's stock buying program will begin with nine banks, which it didn't name. People briefed on the matter said $125 billion will be disbursed in days: Citigroup Inc., Wells Fargo & Co., JPMorgan Chase & Co. and a combined Bank of America Corp./Merrill Lynch & Co each will get $25 billion, while Morgan Stanley and will get $10 billion each. Bank of New York Mellon Corp. said it will receive about $3 billion and State Street Corp. said it's getting $2 billion.
And in today's Investment News article Treasury selects BNY Mellon custodian, we learned:
The Department of the Treasury has hired The Bank of New York Mellon Corp. to be the custodian that will implement its $700 billion economic-stimulus package.
. . .
Under the three-year contract, BNY Mellon will also be responsible for providing the accounting for the portfolio, hold the portfolio's cash and assets, provide for pricing and asset valuation services, and assist with other related services.

Additionally, the bank will serve as the auction manager and conduct reverse auctions for the troubled assets.

So that pretty much determines the winners and the losers for a long time to come. The oligarchy is tightening its grip. It never was about YOUR financial problems in the first place.

Today, we must say, "NO MORE!"
The Dragon Wins NO MORE!
Let's accept our past failures now. Congress proved themselves not worthy of our trust.
Pass the American Monetary Act to prevent giving away TITLE to our homeland.


Symbol Name Of Corporation
C

Major
Holders
Citigroup Inc. (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Barclays Global Investors UK Holdings Ltd243,281,1994.47$4,077,392,895
Capital World Investors231,729,2154.26$3,883,781,643
State Street Corporation191,355,0783.51$3,207,111,107
Capital Research Global Investors168,410,5803.09$2,822,561,320
Vanguard Group, Inc. (The)165,309,1913.04$2,770,582,041
AXA (Paris, France)114,157,0172.10$1,913,271,604
UBS Global Asset Management (Americas) Inc84,115,0761.54$1,409,768,673
Dodge & Cox Inc83,091,0201.53$1,392,605,495
Bank of New York Mellon Corporation71,183,1841.31$1,193,030,163
FMR LLC (Fidelity)71,105,0401.31$1,191,720,470
% of Shares Held by All Insider and 5% Owners:0%
Top 10 [0.8%] of 1203 Institutional Holders Control26.16%
Percentage of Barclays and "Associates" Control9.29%
NOTE: Capital Group manages four funds that control 3.80%.
Vanguard manages three funds that control 2.29%.
Washington Mutual manages a fund that controls 0.90%.
Therefore, the TOP 10 Major Holders control 33.15% of Citigroup.
Barclays/Associates control 10.19%.
Capital Group controls 7.35%.

Symbol Name Of Corporation
WFC

Major
Holders
Wells Fargo & Company (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Berkshire Hathaway, Inc290,654,8688.78$6,903,053,115
Barclays Global Investors UK Holdings Ltd118,462,6433.58$2,813,487,771
State Street Corporation116,149,1563.51$2,758,542,455
Vanguard Group, Inc. (The)101,518,3643.07$2,411,061,145
Capital World Investors80,491,4002.43$1,911,670,750
Marsico Capital Management, Llc78,239,2332.36$1,858,181,783
UBS Global Asset Management (Americas) Inc71,722,6012.17$1,703,411,773
FMR LLC (Fidelity)63,313,4391.91$1,503,694,176
Davis Selected Advisers, LP57,407,2211.73$1,363,421,498
State Farm Mutual Automobile Insurance Co55,039,0141.66$1,307,176,582
% of Shares Held by All Insider and 5% Owners:0%
Top 10 [0.8%] of 1185 Institutional Holders Control31.20%
Percentage of Barclays and "Associates" Control7.09%
NOTE: Vanguard manages three funds that control 2.27%.
Washington Mutual manages a fund that controls 1.14%.
Capital Group manages a fund that controls 1.03%.
Therefore, the TOP 10 Major Holders control 35.64% of Wells Fargo.
Barclays/Associates control 8.23%.

Symbol Name Of Corporation
JPM

Major
Holders
JP Morgan Chase Co. (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Barclays Global Investors UK Holdings Ltd157,667,9994.59$5,409,589,045
AXA (Paris, France)140,498,8874.09$4,820,516,812
State Street Corporation131,086,9543.81$4,497,593,391
Vanguard Group, Inc. (The)107,840,9123.14$3,700,021,690
FMR LLC (Fidelity)97,127,1492.83$3,332,432,482
Davis Selected Advisers, LP74,560,8552.17$2,558,182,935
Morgan Stanley55,908,0161.63$1,918,204,028
Bank of New York Mellon Corporation54,224,8731.58$1,860,455,392
Capital Research Global Investors51,293,9001.49$1,759,893,709
Northern Trust Corporation42,740,5601.24$1,466,428,613
% of Shares Held by All Insider and 5% Owners:1%
Top 10 [0.7%] of 1373 Institutional Holders Control26.57%
Percentage of Barclays and "Associates" Control12.85%
NOTE: Vanguard manages four funds that control 2.97%.
Capital Group manages a fund that controls 1.49%.
Davis Advisers manages a fund that controls 0.96%.
Therefore, the TOP 10 Major Holders control 31.99% of JP Morgan Chase.

Symbol Name Of Corporation
BAC

Major
Holders
Bank Of America (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Barclays Global Investors UK Holdings Ltd181,112,4723.97$4,323,154,706
State Street Corporation165,567,3823.63$3,952,093,408
Vanguard Group, Inc. (The)138,310,2893.03$3,301,466,598
FMR LLC (Fidelity)105,234,1322.31$2,511,938,730
Capital Research Global Investors103,697,4402.27$2,475,257,892
Capital World Investors94,766,9502.08$2,262,087,096
AXA (Paris, France)93,349,3972.05$2,228,250,106
Wellington Management Company, Llp71,438,0471.57$1,705,226,181
Bank of New York Mellon Corporation61,653,7181.35$1,471,674,248
Morgan Stanley54,719,4041.20$1,306,152,173
% of Shares Held by All Insider and 5% Owners:1%
Top 10 [0.7%] of 1347 Institutional Holders Control23.46%
Percentage of Barclays and "Associates" Control10.15%
NOTE: Vanguard manages three funds that control 2.19%.
Washington Mutual manages a fund that controls 0.90%.
Franklin manages a fund that controls 0.57%.
Therefore, the TOP 10 Major Holders control 27.12% of Bank of America.
Barclays/Associates control 11.62%.

Symbol Name Of Corporation
MS

Major
Holders
Morgan Stanley (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
AXA (Paris, France)66,771,5866.02$2,408,451,107
Barclays Global Investors UK Holdings Ltd49,265,4524.44$1,777,004,853
Vanguard Group, Inc. (The)33,151,3122.99$1,195,767,823
UBS Global Asset Management (Americas) Inc26,264,3392.37$947,354,707
State Street Corporation181,543,69616.37$6,548,281,114
Price (T.Rowe) Associates Inc21,670,6241.95$781,659,407
FMR LLC (Fidelity)19,806,1411.79$714,407,505
JP Morgan Chase & Company17,603,2591.59$634,949,552
Bank of New York Mellon Corporation14,613,7491.32$527,117,926
Credit Suisse/14,250,8071.28$514,026,608
% of Shares Held by All Insider and 5% Owners:0%
Top 10 [1.3%] of 770 Institutional Holders Control40.12%
Percentage of Barclays and "Associates" Control25.67%
NOTE: Vanguard manages three funds that control 2.14%.
Fidelity manages two funds that control 1.03%.
Therefore, the TOP 10 Major Holders control 43.29% of Morgan Stanley.

Symbol Name Of Corporation
GS

Major
Holders
Goldman Sachs Group (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Barclays Global Investors UK Holdings Ltd17,175,8184.36$3,004,050,568
Marsico Capital Management, LLC16,007,3874.06$2,799,691,986
State Street Corporation13,865,5483.52$2,425,084,345
FMR LLC (Fidelity)12,362,6493.14$2,162,227,310
Vanguard Group, Inc. (The)11,595,2912.94$2,028,016,395
Wellington Management Company, LLP10,567,6742.68$1,848,286,182
AXA (Paris, France)10,168,2952.58$1,778,434,795
Janus Capital Management, LLC7,251,9491.84$1,268,365,880
Price (T.Rowe) Associates Inc6,783,2641.72$1,186,392,873
Northern Trust Corporation6,294,0081.60$1,100,821,999
% of Shares Held by All Insider and 5% Owners:8%
Top 10 [1.0%] of 984 Institutional Holders Control28.44%
Percentage of Barclays and "Associates" Control13.04%
NOTE: Vanguard manages three funds that control 2.18%.
Fidelity manages two funds that control 1.33%.
Therefore, the TOP 10 Major Holders control 31.95% of Goldman Sachs.

Symbol Name Of Corporation
STT

Major
Holders
State Street Corp. (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Price (T.Rowe) Associates Inc25,419,7325.89$1,626,608,650
State Street Corporation18,804,1294.36$1,203,276,214
FMR LLC (Fidelity)18,163,4344.21$1,162,278,141
Massachusetts Financial Services Co - Other17,017,8213.94$1,088,970,365
Barclays Global Investors UK Holdings Ltd16,351,2013.79$1,046,313,351
Wellington Management Company, LLP14,148,6683.28$905,373,265
Vanguard Group, Inc. (The)13,395,7583.10$857,194,554
Capital Research Global Investors9,575,0002.22$612,704,250
Wells Fargo & Company7,359,6241.70$470,942,339
General Electric Company6,552,0491.52$419,265,615
% of Shares Held by All Insider and 5% Owners:-.--%
Top 10 [1.3%] of 792 Institutional Holders Control34.01%
Percentage of Barclays and "Associates" Control17.26%
NOTE: Vanguard manages three funds that control 2.63%.
T.Rowe Price manages two funds that controls 1.83%.
Therefore, the TOP 10 Major Holders control 38.47%, and
Barclays/Associates control 19.09% of State Street.

Symbol Name Of Corporation
BK

Major
Holders
Bank of New York Mellon (As of 30-Jun-2008)
Top 10 Institutional HoldersSharesPct.Value
Barclays Global Investors UK Holdings Ltd57,220,6844.99$2,164,658,475
Davis Selected Advisers, LP45,438,4623.96$1,718,937,017
State Street Corporation42,177,2483.68$1,595,565,291
FMR LLC (Fidelity)41,344,6053.61$1,564,066,407
Vanguard Group, Inc. (The)35,933,8663.14$1,359,378,150
Lord Abbett & Co35,466,3123.09$1,341,690,582
Massachusetts Financial Services Co - Other30,347,4042.65$1,148,042,293
Morgan Stanley22,370,1111.95$846,261,299
Price (T.Rowe) Associates Inc21,096,5431.84$798,082,221
Capital Research Global Investors16,912,9411.48$639,816,558
% of Shares Held by All Insider and 5% Owners:0%
Top 10 [1.2%] of 840 Institutional Holders Control30.39%
Percentage of Barclays and "Associates" Control15.11%
NOTE: Vanguard manages three funds that control 2.24%.
Davis Selected Advisers manages a fund that controls 2.02%.
Lord Abbett manages a fund that controls 1.19%.
Therefore, the TOP 10 Major Holders control 35.84% of Bank of New York Mellon.

© 2008 by Edward Ulysses Cate
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