Finance & Fury Podcast

Welcome to Finance and Fury Today we are discussing the concentration risk Last week – how the modern banking system acts like dominos failing– Due to their liabilities and obligations to one another this week – look at the other side of the balance sheet – Which is the Equity Holders – Shareholders – who owns the shares of banks Also – the concentration risk that just a handful of companies have in the overall size/weight of the Aus Share Market. Plus – Look at two events that every bank just did as this is a real-world example   Concentration in the index – Complex with lots of elements – break down major ones Remember – Big 4 banks – including Macquarie = 5 of the top 8 companies on ASX by market cap Australian bank shares – ownership and connectivity – beyond the derivative concentration representing 23% of ASX300 - IMF report in 2012: big four controlled 88% of residential mortgages and 80% of deposits. biggest six American banks held 30% of total deposits not just banking: the big four own 53% of