Editorial Board
What We’ve Written About Bank Subsidies
Here are the links to Bloomberg View's explanation of the too-big-to-fail issue.Â
The idea that the largest global banks have become too unwieldy and threatening -- and that taxpayers should stop encouraging them with billions of dollars in subsidies -- is gaining traction in the political arena. Democrats and Republicans alike are beginning to recognize that paying banks to put the broader economy in danger is bad policy.
In a number of editorials and blog posts in recent weeks, Bloomberg View has sought to explain the too-big-to-fail issue. Some of the points we've addressed: how much of a subsidy the largest financial institutions receive, why the subsidy makes our economy more vulnerable to crises, and how requiring banks to have more equity could go a long way toward solving the problem.