Big Banks’ ‘Too-Big-to-Fail Subsidy’ Is Waning, GAO Finds

The largest U.S. banks enjoyed lower funding costs than smaller rivals during the 2008 economic crisis although that advantage has declined in recent years, according to a report from a government watchdog.

A study by the Government Accountability Office, released today, comes after two years of congressional and industry debate over whether large banks continue to get what has come to be known as a too-big-to-fail subsidy despite regulatory changes. Senators Sherrod Brown, a Democrat from Ohio, and David Vitter, a Louisiana Republican, requested the report in January 2013.