The 20 Banks That Could Bring The Entire Financial System To Its Knees

Lloyd Blankfein Gary Cohn

Photo: AP

NYU’s Stern School of Business has released its rankings of the banking institutions that are most capable of causing major damage to our financial system.The ranking is based on the percentage of total systemic capital that each institution would be responsible for should it default.

The study also identified the amount of capital shortfall that each firm would experience should the market fall into steep decline (SRISK) and what percentage the company’s stock would decline in the event of a two per cent market fall (MES).

#20 E-Trade

Systemic Risk: 0.4%

SRISK: $1.97 billion

MES: 3.44%

Company Type: Broker Dealer

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#19 Keycorp

Systemic Risk: 0.5%

SRISK: $2.6 billion

MES: 2.84%

Company Type: Depositories

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#18 Ameriprise Financial

Systemic Risk: 0.5%

SRISK: $2.8 billion

MES: 2.85%

Company Type: Financial Products

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#17 Bank of New York Mellon

Systemic Risk: 0.7%

SRISK: $3.9 billion

MES: 3.43%

Company Type: Depositories

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#16 Genworth Financial

Systemic Risk: 0.9%

SRISK: $4.8 billion

MES: 2.79%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#15 Suntrust Banks

Systemic Risk: 0.9%

SRISK: $5.1 billion

MES: 2.93%

Company Type: Financial Services

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#14 Principal Financial Group

Systemic Risk: 1.1%

SRISK: $5.9 billion

MES: 2.66%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#13 Regions Financial

Systemic Risk: 1.2%

SRISK: $6.4 billion

MES: 3.74%

Company Type: Depositories

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#12 Lincoln National

Systemic Risk: 2.1%

SRISK: $11.2 billion

MES: 3.50%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#11 SLM Corporation

Systemic Risk: 2.5%

SRISK: $13.4 billion

MES: 3.59%

Company Type: Student Lender

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#10 Wells Fargo

Systemic Risk: 3.5%

SRISK: $18.7 billion

MES: 3.02%

Company Type: Depositories

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#9 Hartford Financial Services

Systemic Risk: 3.8%

SRISK: $20.5 billion

MES: 3.94%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#8 Prudential Financial

Systemic Risk: 5.1%

SRISK: $27 billion

MES: 2.95%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#7 Goldman Sachs

Systemic Risk: 5.1%

SRISK: $27.2 billion

MES: 2.93%

Company Type: Financial Services

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#6 American International Group

Systemic Risk: 5.6%

SRISK: $29.7 billion

MES: 4.02%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#5 MetLife

Systemic Risk: 7.2%

SRISK: $38.2 billion

MES: 3.50%

Company Type: Insurance

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#4 Morgan Stanley

Systemic Risk: 8.0%

SRISK: $42.7 billion

MES: 3.22

Company Type: Financial Services

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#3 JPMorgan Chase

Systemic Risk: 12.5%

SRISK: $65.9 billion

MES: 2.71%

Company Type: Financial Services

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#2 Citigroup

Systemic Risk: 14.5%

SRISK: $77.4 billion

MES: 2.73%

Company Type: Financial Services

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

#1 Bank Of America

Systemic Risk: 20.5%

SRISK: $116 billion

MES: 3.52%

Company Type: Depositories

SRISK describes the capital shortfall in a steep market decline. MES describes the projected stock decline when the market drops two per cent. From a study by NYU Stern.

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