Market Reforms ‘Reduced, But Not Eliminated’ Too Big To Fail: GAO

The US Government Accountability Office (GAO) has released the long-awaited findings on the impact that Dodd-Frank and other market reforms have had on too big to fail, and specifically whether large banks benefit from a real or perceived government guarantee with lower funding costs than their smaller competitors.

“We found that while views varied among market participants with whom we spoke, many believed that recent regulatory reforms have reduced but not eliminated the likelihood the federal government would prevent the failure of one of the largest bank holding companies,” said Lawrance L. Evans, Jr., PhD, Director Financial Markets and Community Investment in a statement to Senate Committee on Banking, Housing, and Urban Affairs.

Too big to fail banks’ don’t currently...

Login required to continue reading.

Setup a free account to get access to this article (no credit card required).

View Full Article

Already a member? Log in here