Cheat Sheet: How GAO Big Bank Subsidy Investigation Will Reignite TBTF Debate

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The Government Accountability Office is poised this fall to unveil the first of two reports on whether big banks benefit from an implicit subsidy due to the perception that they are “too big to fail,” adding more fuel to an already contentious debate…

Expert quote:

“You’re never going to get to the exact number, but to me the good thing is the policy debate has been moved from an exclusive focus on capital — the policy needle seems to be shifting towards saying, ‘ok we do need capital requirements, but there’s also this other thing, the subsidy that most people think is very large.”

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