Layered Capitalism: Part Two

In Part One we discussed the relationship of each of the following banks and their investment pools: (i) JP Morgan; (ii) Barclays Global Investors UK Holdings Ltd; (iii) State Street Corporation; (iv) FMR Corporation (Fidelity Management & Research Corp); (v) Vanguard Group, Inc.; (vi) Mellon Financial Corporation; (vii) Legg Mason Inc.; (viii)Morgan Stanley; (ix)Bank Of America Corporation; (x) Franklin Resources, Inc.; (xi) Goldman Sachs Group Inc.; (xii) Janus Capital Management, LLC; (xiii) Price (T. Rowe) Associates Inc.; (xiv) Bank of New York Mellon Corporation; (xv) Northern Trust Corporation; (xvi) AXA (Paris, France); (xvii) Wellington Management Company, LLP; (xviii) Capital Research Global Investors, in addition, the following two are also investment pools containing these banking interests; (xviii) Marsico Capital Management, LLC. and Davis Selected Advisers, LP.

In this part we will discuss how they hold their ownership, what percentage of ownership they maintain and why and how we can capitalize with them.

The Bank’s and their investment pools own between 1.25% and Generally no more than 4.5 % of all Major US companies with only a very few exceptions; for example State Street Corporation owns 16.37% of Morgan Stanley, which gives the top 10 Major investors in this case control of 43.29% of Morgan Stanley.

The reason, SEC requires certain disclosure forms to be filed upon a transfer of an interest from a Beneficial owner or an insider, everyone who owns 5 % or more of a public company must disclose their ownership interest and stock transfers on the following forms:
Form 3, Initial Statement of beneficial ownership of securities;
Form 4, Statement of changes in beneficial ownership of securities
Form 5, Annual Statement of Changes in beneficial ownership of securities

By holding under 5% of a company these disclosures are not required and the banks can continue to control any company through their pools which collectively control between 30 to 50% of a company stock. For example:

Goldman Sachs Group: The following are the major shareholders:
(1) Barclays Global Investors UK Holdings Ltd, Share Amount 17,175,818, Percent of ownership in Goldman Sachs 4.36% Value of shares $3,004,050,568:
(2) Marsico Capital Management, LLC, Share Amount 16,007,387, Percent of ownership in Goldman Sachs 4.06 % Value of shares $2,799,691,986:
(3) State Street Corporation, Share Amount 13,865,548 Percent of ownership in Goldman Sachs 3.52% Value of shares $2,425,084,345:
(4) FMR LLC (Fidelity), Share Amount 12,362,649 Percent of ownership in Goldman Sachs 3.14 % Value of shares $2,162,227,310:
(5) Vanguard Group, Inc. Share Amount 11,595,291Percent of ownership in Goldman Sachs 2.94 % Value of shares $2,028,016,395:
(6) Wellington Management Company, LLP. Share Amount 10,567,674 Percent of ownership in Goldman Sachs 2.68 % Value of shares $1,848,286,182:
(7) AXA (Paris, France). Share Amount 10,168,295 Percent of ownership in Goldman Sachs 2.58 % Value of shares $1,778,434,795:
(8) Janus Capital Management, LLC Share Amount 7,251,949 Percent of ownership in Goldman Sachs 1.84 % Value of shares $1,268,365,880
(9) Price (T.Rowe) Associates Inc., Share Amount 6,783,264 Percent of ownership in Goldman Sachs 1.72 % Value of shares $1,186,392,873
(10) Northern Trust Corporation Share Amount 6,294,008 Percent of ownership in Goldman Sachs 1.60 % Value of shares $1,100,821,999

Eight percent (8%) of the Shares are held by ALL insiders and 5% beneficial owners.
Of 984 Institutional Investors the above listed 10 control 28.44 % of the company.
Vanguard manages three funds that control 2.18%.
Fidelity manages two funds that control 1.33%.

Add these Bank controlled investment pools together and the TOP 10 Major Bank Holders control 31.95% of Goldman Sachs.

Let’s analyze J.P. Morgan Chase Co.
(1) Barclays Global Investors UK Holdings Ltd, Share Amount 157,667,999, Percent of ownership in JP Morgan 4.59 % Value of shares $5,409,589,045:
(2) AXA (Paris, France). Share Amount 140,498,887 Percent of ownership in JP Morgan 4.09 % Value of shares $4,820,516,812:
(3) State Street Corporation, Share Amount 131,086,954 Percent of ownership in JP Morgan 3.81 % Value of shares $4,497,593,391:
(4) Vanguard Group, Inc. Share Amount 107,840,912 Percent of ownership in JP Morgan 3.14 % Value of shares $3,700,021,690:
(5) FMR LLC (Fidelity), Share Amount 97,127,149 Percent of ownership in JP Morgan 2.83 % Value of shares $3,332,432,482:
(6) Davis Selected Advisers, LP. Share Amount 74,560,855 Percent of ownership in JP Morgan 2.17 % Value of shares $2,558,182,935:
(7) Morgan Stanley. Share Amount 55,908,016 Percent of ownership in JP Morgan 1.63 % Value of shares $1,918,204,028:
(8) Bank of New York Mellon Corporation. Share Amount 54,224,873 Percent of ownership in JP Morgan 1.58 % Value of shares $1,860,455,392:
(9) Capital Research Global Investors. Share Amount 51,293,900 Percent of ownership in JP Morgan 1.49 % Value of shares $1,759,893,709
(10) Northern Trust Corporation. Share Amount 42,740,560 Percent of ownership in JP Morgan 1.24 % Value of shares $1,466,428,613

Shares held by ALL insiders and beneficial owners of 5 % or more of the company equal one (1) Percent of the Company. The top 10 Investors from above out of the 1373 Institutional Investors control 26.57% of JP Morgan.
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%.

In total, the TOP 10 Major shareholders control 31.99% of JP Morgan Chase Co.

Who Controls ABC and its news:
ABC is owned by Walt Disney Co. in part, but is controlled by the following investors:
(1) FMR Corporation (Fidelity Management & Research Corp). ownership interest 4.26%
(2) State Street Corporation. ownership interest 3.43%
(3) Barclays Global Investors UK Holdings Ltd. ownership interest 3.21%
(4) Wellington Management Company, LLP. ownership interest 3.21%
(5) Legg Mason Inc. ownership interest 2.77%
(6) Vanguard Group, Inc. ownership interest 2.63%
(7) Morgan Stanley. ownership interest 2.06%

Shares Held by All Insider and 5% beneficial Owners 20.00%
Total ownership held by of Barclays and their "associates" 11.47%
Total ownership and control by this Group 29.83%
Total control by all insiders including this group 49.83%
Remember it only takes 10% to control a company.

Who Controls CBS and its news:
There are two investment pools that have not been mentioned they are as follows: NAIRI, Inc., and NWQ Investment Management Company, LLC.
They are also Bank investment pools
(1) NAIRI, Inc. Controls 6.14% of CBS
(2) NWQ Investment Management Company, LLC. Controls 4.72% of CBS
(3) Wellington Management Company, LLP Controls 4.47% of CBS
(4) Barclays Global Investors UK Holdings Ltd. Controls 3.96% of CBS
(5) Franklin Resources, Inc. Controls 3.73% of CBS
(6) T. Rowe Price Associates Controls 3.34% of CBS
(7) Harris Associates L.P. Controls 3.30% of CBS
(8) Morgan Stanley controls 2.96% of CBS
(9) State Street Corporation controls 2.94% of CBS
(10) Vanguard Group, Inc. controls 2.69% of CBS
(11) Capital Research And Management Company Controls 2.43 % of CBS
Total Control by Barclays and their associates 21.65%
Total Control of CBS by Banking interests 58.37%

Who controls NBC and its news:
NBC is owned by General Electric Co. (a government contractor) and controlled by the following Banking Interests:
(1) Barclays Global Investors UK Holdings Ltd controls 3.77% of NBC Stock
(2) Capital Research And Management Company controls 3.01% of NBC stock
(3) FMR Corporation (Fidelity Management & Research Corp) controls 2.90% of NBC Stock
(4) State Street Corporation controls 2.85% of NBC
(5) Vanguard Group, Inc. controls 2.55% of NBC
(6) AXA (Paris, France) controls 1.79% of NBC
(7) Northern Trust Corporation controls 1.44% of NBC
(8) Mellon Financial Corporation controls 1.38% of NBC
(9) T. Rowe Price Associates controls 1.17% of NBC
(10) JP Morgan Chase & Company controls 1.09% of NBC

Total percentage controlled by Barclays and "associates” 11.70% of NBC Stock
Total Bank control of NBC 29.88%, remember only 10% is needed to control a company

FOX is owned by NEWS CORP. and is controlled by the following Banking Interests:
(1) AE Harris Trust controls 6.08% of FOX
(2) Legg Mason Inc. Controls 4.35 % of FOX
(3) FMR Corporation (Fidelity Management & Research Corp). Controls 3.02 % of FOX
(4) Morgan Stanley. Controls 1.26 % of FOX
(5) Harris Associates L.P. Controls 1.25 % of FOX
(6) Southeastern Asset Management, Inc. Controls 1.04% of FOX
(7) Mellon Financial Corporation Controls 0.85% of FOX
(8) JP Morgan Chase & Company Controls 0.70% of FOX
(9) Capital Research And Management Company Controls 0.65% of FOX
(10) UBS AG Controls 0.53% of FOX
(11) Citigroup Inc. Controls 0.52% of FOX

Total percentage FOX controlled by Barclays and "associates" 7.68%
Total Control of FOX by Banking Interests is 27.93%

CNN is owned by Time-Warner Inc. and controlled by the following Banking interests.
Percent of shares held by all insiders and beneficial ownership of 5% or more is only 4.00%
(1) Legg Mason Inc. controls 4.38% of CNN
(2) AXA (Paris, France) controls 3.72% of CNN
(3) Dodge & Cox, Inc. controls 3.62% of CNN
(4) Barclays Global Investors UK Holdings Ltd controls 3.29% of CNN
(5) State Street Corporation controls 3.08% of CNN
(6) Capital Research And Management Company controls 3.02% of CNN
(7) UBS AG controls 2.88% of CNN
(8) Vanguard Group, Inc. controls 2.63% of CNN
(9) Goldman Sachs Group Inc controls 2.22% of CNN
(10) Deutsche Bank Aktiengesellschaft controls 1.95% of CNN

Total percentage controlled by Barclays and "associates" 12.97%
Total Control of CNN by Banking Interests is 40.47%

Again the point being made, if we are going to go to war with a country, for example “IRAQ”, do you really believe the Media will question the motive or the purpose, when ABC, CBS, NBC, CNN, and FOX and each newspaper, magazine and radio station that provides us our “nightly news” are ALL controlled by the Banks and their investment pools. And when the war profiteers such as Halliburton, Brown and Root, Bechtel, and each company the Government contracts with to carry on the war effort are controlled by these same Banks and their investment pools?

Ok, now that we understand how the system is set up, do you honestly believe you can successfully invest in the stock market long term?

Well you can and you can reap large profits, if you find a start up and get lucky, but the safest bet is to acquire shares in these banks and their investment pools, in that way you own what the Banks own and profit as the Banks profit, from the dividends. No need to invest in individual Fortune 500 companies when you can invest in JP Morgan or State Street Corporation or any one of the companies we have disclosed in this article, and own a piece of everything.

There is an old saying, if you can’t beat them join them, in this case by investing with the Banks, you also can win!