Quote:
While the study did not pinpoint the reason big banks can borrow more cheaply, Wall Street critics say it is because investors believe the U.S. government would again rescue them in a panic.
The new research shows "it is improper to ask the taxpayer to underwrite the non-commercial banking operations of a complex bank holding company," Dallas Fed President Richard Fisher, a long-time critic of big banks, said in an interview.
Fed economists estimated the funding advantage for the five largest banks over smaller peers to be about 0.31 percent, which they said was statistically significant. The Fed said the papers represented the conclusions of their individual authors, not the central bank itself.
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Fed Confirms The Obvious: Too-Big-To-Fail Banks Have Unfair Advantage
Does Free Enterprise exist in America?
Caveat: The title implies the study was done by the Fed Reserve but it was allegedly done "independently" by Federal reserve employees.
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