Goldman Sachs Research Disputes ‘Too Big to Fail’ Subsidy
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Bond investors don’t perceive the six biggest U.S. banks as “too big to fail,” according to a report from one of those lenders, Goldman Sachs Group Inc.
The half-dozen largest U.S. banks by assets have had an average funding-cost advantage over smaller competitors of 0.31 percentage point since 1999, according to the report from the New York-based firm. The advantage was widest in the financial crisis and then reversed so that the biggest banks now pay an average 0.10 percentage point more than smaller ones, the study found.