JPMorgan passes Citigroup as largest U.S. bank

The JP Morgan and Chase headquarters is seen in New York in this January 30, 2008 file photo. JPMorgan Chase & Co has become the largest U.S. bank by assets, surpassing long-time leader Citigroup Inc.

NEW YORK (Reuters) - JPMorgan Chase & Co (JPM.N) has become the largest U.S. bank by assets, surpassing long-time leader Citigroup Inc (C.N).

Citigroup on Thursday said it ended September with $2.05 trillion of assets, while a day earlier JPMorgan said it ended the month with $2.25 trillion.

JPMorgan, led by Jamie Dimon, vaulted over Citigroup with its $1.9 billion shotgun purchase on Sept 25 of the banking units of Washington Mutual Inc (WAMUQ.PK), once the nation's largest savings and loan.

Citigroup, led by Vikram Pandit, is trying to shed assets to cut costs and boost efficiency, following more than $20 billion of net losses in the last year. Citigroup has pared its asset base from $2.36 trillion at the end of September 2007.

Bank of America Corp (BAC.N) may pass JPMorgan as the largest U.S. bank by assets when it completes its acquisition of Merrill Lynch & Co MER.N, scheduled for the first quarter of 2009.

JPMorgan is also the largest U.S. bank by market value, followed by Bank of America, Wells Fargo & Co (WFC.N) and Citigroup, Reuters data shows.

(Reporting by Jonathan Stempel; Editing by Steve Orlofsky)