Bold Banking Predictions for 2014

From American Banker




GAO and the ‘Too Big to Fail’ Banks

“The General Accountability Office will deliver its report in 2014 estimating the subsidy that the six [too big to fail banks] receive for the implicit government (taxpayer) guarantee of their funding elements. GAO’s ‘goldilocks’ estimate will either be: too high (prompting more purchased analyses by the TBTFs’ lobbyists countering its findings); too low (questioning the GAO’s credibility); or, just right (raising the question: How can we use that subsidy to right size these banks that threaten the entire financial system?). The TBTFs cling to their subsidy and the GAO’s report will prompt the first serious debate over these banks’ quasi-GSE status.”

– Cornelius Hurley, director of the Boston University Center for Finance, Law & Policy


(Image: Thinkstock)

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