History of holding company

After World War II, the holding companies of American banks have been widely developed. The number of holding companies is increasing and their strength is also increasing. Many big banks in America have their own holding companies. For example, the holding company of Chicago First National Bank is called Chicago First Company. The "Western Bank Company" in Los Angeles is also a well-known bank holding company. As early as 1974, it ranked 27th among the world's largest banks. It has assets of183 billion US dollars, and controls most of the shares of more than 20 banks in the western United States 1 1 states. These bank holding companies do not operate banking business themselves, but only aim at controlling bank shares. PRNewswire is another type of large holding company in the United States. In the 1960s, its share capital was only over 300 million dollars, while the total capital of the 16 enterprises it controlled was as high as 2 billion dollars. Exxon is actually a holding company. Its new york headquarters only gives policy guidance and control to its branches, and various specific business activities are carried out by Exxon, Esso Oriental, Exxon Chemical and Exxon Research Engineering under its control. Therefore, through the establishment of joint-stock companies, financial capital can control and manipulate many other enterprises whose capital exceeds their own wealth, thus becoming an important means for financial capital to rule through participation system.