These 67 US Corps generated Total Adjusted Earnings from Continuing Operations of $165.3 bil in the 2Q 2013, up 5% from the 2Q 2012. If both Fannie Mae and Freddie Mac are excluded, this Total Adjusted Earnings growth drops down to 1%.
The clear story here is how the Financial Corps performed on the Earnings front in the 2Q 2013 versus how the Non-Financial Corps performed.
The 18 Financial Corps generated Total Adjusted Earnings in the 2Q 2013 of $51.8 bil, up an incredibly high 46% over the 2Q 2012.
On the other hand, the 49 Non-Financial Corps generated Total Adjusted Earnings in the 2Q 2013 of $113.4 bil, down 7% from the 2Q 2012.
Yeah, that's a 53% earnings change between the Financial Corps' total earnings being up 46% versus the Non-Financial Corps' total earnings being down 7%.
Thus, the Total Earnings of the 18 Financial Corps comprised 31.4% of the Total Earnings of all 67 Largest Corps in the 2Q 2013, substantially higher than the 22.7% of the Total Earnings the Financial Corps comprised only one year earlier in the 2Q 2012.
This bifurcation between the 2Q 2013 earnings growth of the US Big Financial Industry and the rest of Corporate America is just massive. This is taking the US towards what existed before the 2008 financial bubble, where the Earnings of the US Big Financial Corps comprised a very significant portion of the Total Earnings of all of Corporate America.
This is a very bad development, being triggered by the substantial propping up of the US Big Financial Industry by the US Congress, which is under effective control to a large extent by the Big Financial Industry, and by US Fed action, which has overwhelmingly benefited the Big Financial Industry and the wealthy.
And this horrible economic development is also being triggered by an uncompromising US Congress which is bent on stopping the US economy in its tracks, which it certainly did very successfully in the 2Q 2013. And it's also triggered by a US Congress determined to keep expanding the huge economic wealth gap between the wealthy and everyone else.
And I suggest that capitalism is not working properly in the US when the Government Sponsored Enterprise Fannie Mae earns three times what a spectacular company like Google earned in the most recent 2Q 2013, and also when the Government Sponsored Enterprise Freddie Mac earns more in the 2Q 2013 than Coke and Pepsico combined earned. I'm just saying.
Below here are the earnings of these 67 Largest US Corps for the 2Q 2013 and for the comparable 2Q 2012:
| 2Q 2013 | 2Q 2012 | |||
| Adjusted | Adjusted | |||
| Net | Net | Adjusted | Adjusted | |
| Income | Income | Net | Net | |
| From | From | Income | Income | |
| Continuing | Continuing | Increase | Increase | |
| Operations | Operations | (Decrease) | (Decrease) | |
| mil $s | mil $s | Amount | % | |
| US Largest Corps With After-tax Adjusted Earnings above $1 bil | ||||
| Financial Corps | ||||
| Fannie Mae | 10,095 | 5,119 | 4,976 | 97% |
| JPMorgan Chase | 6,496 | 4,960 | 1,536 | 31% |
| Wells Fargo | 5,519 | 4,622 | 897 | 19% |
| Freddie Mac | 4,988 | 3,020 | 1,968 | 65% |
| Citigroup | 4,188 | 2,979 | 1,209 | 41% |
| Bank of America | 4,012 | 2,463 | 1,549 | 63% |
| Goldman Sachs | 1,931 | 962 | 969 | 101% |
| AIG | 1,655 | 1,678 | (23) | -1% |
| MetLife | 1,593 | 1,432 | 161 | 11% |
| US Bancorp | 1,444 | 1,378 | 66 | 5% |
| United Health | 1,436 | 1,337 | 99 | 7% |
| American Express | 1,405 | 1,339 | 66 | 5% |
| American Express | 1,392 | 1,325 | 67 | 5% |
| Capital One Financial | 1,236 | 193 | 1,043 | 540% |
| Visa | 1,225 | 1,055 | 170 | 16% |
| PNC Financial | 1,123 | 546 | 577 | 106% |
| Prudential Financial | 1,090 | 648 | 442 | 68% |
| Morgan Stanley | 1,009 | 562 | 447 | 80% |
| Total all 18 Financial Corps | 51,837 | 35,618 | 16,219 | 46% |
| Non-Financial Corps | ||||
| Apple | 6,900 | 8,824 | (1,924) | -22% |
| Exxon Mobil | 6,860 | 8,410 | (1,550) | -18% |
| Chevron | 5,365 | 7,210 | (1,845) | -26% |
| Microsoft | 4,380 | 6,123 | (1,743) | -28% |
| Johnson & Johnson | 4,289 | 3,644 | 645 | 18% |
| Oracle | 4,114 | 4,143 | (29) | -1% |
| Pfizer | 4,003 | 4,449 | (446) | -10% |
| Berkshire Hathaway | 3,919 | 3,720 | 199 | 5% |
| WalMart | 3,784 | 3,742 | 42 | 1% |
| General Electric | 3,685 | 4,010 | (325) | -8% |
| AT&T | 3,606 | 3,902 | (296) | -8% |
| IBM | 3,579 | 4,077 | (498) | -12% |
| 3,233 | 3,362 | (129) | -4% | |
| Coca Cola | 2,869 | 2,791 | 78 | 3% |
| Cisco Systems | 2,728 | 2,605 | 123 | 5% |
| Merck | 2,530 | 3,227 | (697) | -22% |
| Procter & Gamble | 2,320 | 2,403 | (83) | -3% |
| Phillip Morris Intl | 2,124 | 2,317 | (193) | -8% |
| Verizon Communications | 2,097 | 1,825 | 272 | 15% |
| Pepsico | 2,050 | 1,765 | 285 | 16% |
| Intel | 2,000 | 2,827 | (827) | -29% |
| Walt Disney | 1,847 | 1,831 | 16 | 1% |
| Ford Motor | 1,833 | 1,203 | 630 | 52% |
| QualComm | 1,823 | 1,486 | 337 | 23% |
| ConocoPhillips | 1,750 | 1,500 | 250 | 17% |
| Comcast | 1,734 | 1,348 | 386 | 29% |
| Hewlett Packard | 1,698 | 1,949 | (251) | -13% |
| United Technologies | 1,552 | 1,466 | 86 | 6% |
| Schlumberger | 1,536 | 1,349 | 187 | 14% |
| Amgen | 1,444 | 1,433 | 11 | 1% |
| General Motors | 1,411 | 1,496 | (85) | -6% |
| McDonalds | 1,397 | 1,347 | 50 | 4% |
| AbbVie | 1,319 | 1,267 | 52 | 4% |
| Boeing | 1,289 | 1,128 | 161 | 14% |
| Occidental Petroleum | 1,276 | 1,332 | (56) | -4% |
| Altria Group | 1,266 | 1,225 | 41 | 3% |
| Eli Lilly | 1,255 | 924 | 331 | 36% |
| Home Depot | 1,226 | 1,035 | 191 | 18% |
| 3M | 1,197 | 1,167 | 30 | 3% |
| CVS Caremark | 1,197 | 1,042 | 155 | 15% |
| DuPont | 1,189 | 1,421 | (232) | -16% |
| Medtronic | 1,124 | 1,036 | 88 | 8% |
| Union Pacific | 1,106 | 1,002 | 104 | 10% |
| Deere | 1,084 | 1,056 | 28 | 3% |
| United Parcel Service | 1,071 | 1,116 | (45) | -4% |
| Honeywell | 1,021 | 902 | 119 | 13% |
| Caterpillar | 960 | 1,699 | (739) | -43% |
| Phillips 66 | 935 | 1,417 | (482) | -34% |
| Seagate Technology | 447 | 1,028 | (581) | -57% |
| Total all 49 Non-Financial Corps | 113,422 | 121,581 | (8,159) | -7% |
| Grand Total all 67 Largest Corps | 165,259 | 157,199 | 8,060 | 5% |
