In the United States, debates are underway about whether to split up several large banks.
Critics ask whether it would be better for the shareholders of JP Morgan Chase or Citigroup if the banks were dismantled. The difference between each bank’s market value and asset value are solid arguments in favor of break-ups.
The market value of Citigroup, for example, has been at about 75 percent of its asset value for years. This means one of two things: Either the bank is not meaningfully applying its own capital or is keeping risks hidden and secret.