Which Companies Are Too Big To Fail?

Some companies are described as “too big to fail” because they are deeply engraved in the economy that even if they begin to fail, the government intervenes to prevent the economic downfall.

These companies are mostly multinational and have staff all over the world. Most of these companies belong to the financial sector like banks and insurers. Here are top 10 companies that are too big to fail:

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Systemically Important Financial Institutions

1- JPMorgan Chase and Co.

JPMorgan Chase and Co. is the largest bank in the worldWith its headquarter in New York City and financial connections in other countries like Japan, UK and Hong Kong, the bank has more than 100 branches.

JPMorgan Chase and Co. is too big to fail because its size is too big and is interconnected in financial systems of various countries.

2- Bank of America Corporation

Bank of America is also one of the largest banks in America and the world. It is an investment bank and also provides financial services to individuals, small businesses and large corporations. Bank of America has a big role in the global financial system and that makes it too big to fail.

3- Citigroup Inc

Just like the two corporations above, Citigroup Inc is also a multinational investments and financial services company.

Citigroup has been among many challenges including legal and regulatory issues that led it to financial crisis in 2008. But it was immediately bailed out by the US government. Due to the size and global reach of Citigroup, the bank simply cannot fail.

4- Goldman Sachs Group Inc

Goldman Sachs Group is a multinational bank mostly known for its expertise in mergers and acquisitions. It is also known for its investments in technology and innovation. The company also provides services like investment banking, securities underwriting, asset management, and securities trading.

5- Wells Fargo and Company

Wells Fargo and Co. also offers financial services like banking, investment and insurance. It is also one of the largest banks in the USA which makes it too big to fail. The company is based in San Francisco, California and has presence in some other countries too.