Finance-Military Complex

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According to the Forbes Magazine’s ranking of 2007, the first five largest corporations of all times are not industrial but financial institutions such as:

Citigroup (U. S. bank), with approximate assets of $ 1.9 trillion.

HSBC Holdings (U.K. bank), with approximate assets of $ 1.6 trillion.

Bank of America (U.S. bank), with approximate assets of $ 1.46 trillion.

GP Morgan Chase (U.S. bank), with approximate assets of $ 1.36 trillion.

American International Group, AIG (U.S. giant mortgage lender), with approximate assets of $ 980 billion.

And due to the same source, the big five arm making companies are:

Boeing, with approximate assets of $ 52 billion.

Northrop Grumman, with approximate assets of $ 32 billion.

Lockheed Martin, with approximate assets of $ 28.2 billion.

Raytheon, with approximate assets of $25.2 billion.

General Dynamics, with approximate assets of $ 22.3 billion.

As we see the first five largest financial corporations are in average 40 times bigger than the first big five arm making companies.

..................The largest of all arm making companies Boeing, not only makes airplanes, military aircrafts, defence missile systems, space and communication services, but thanks to its sponsoring banks is able to provide customer and commercial financing too. More than 30 banks in North America, Europe and Asia-Pacific region gave their services to Boeing.

Northrop Grumman, which is a global defence and technology corporation, is financed by the Bank of America, JP Morgan Chase, Deutsche Bank (ranks 27), Credit Suisse First Boston (ranks 31), Lehman Bros Holding (ranks 83) and others.

Lockheed Martin, thanks to its more influential governmental connections, is the world’s number one defence contractor, makes F-16 and other kinds of fighter jets, Patriot missiles, satellites and an array of governments systems. One of the guarantors and collateral agents of Lockheed Martin is, JP Morgan Chase which provides security or guarantee of its assets throughout the world.

Raytheon Company, another global arm manufacturer is mostly helped by the Citigroup, Bank of America, Credit Suisse First Boston, and JP Morgan Chase.

General Dynamics, which makes Stryker combat vehicles, Abrams tanks and recently MRAPs (Mine Resistant Ambush Protected) armoured vehicles, gets its services mostly from the Bank of America and JP Morgan Chase.

The average price of different fighter jets in the market is about $ 80 million. For instance the price of an F-35 (JSF) made by Lockheed Martin is about $ 50 million. The price of a Stryker combat vehicle is about $ 2 million. The price of an Abrams tank is about $ 4.3 million. The price of a MRAP is about $2 million and finally the price of a Patriot missile is about $ 2 million.

That is why for instance, Lockheed Martin, “Reports a greater than expected 34 percent rise in second-quarter profit, helped by higher revenue from its combat aircrafts and electronic systems units and lower pension plan.” (July, 24, 2007, International Business Times.) Full year revenue on average will be $ 41.1 billion, thanks to the wars on Afghanistan, Iraq and tension in the world. And as Washington Post wrote about another arm making company, the “General Dynamics finds profit on the battle fields.” (July 20, 2006)