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December 20, 2012

Brown, Vitter To Push For GAO Study On TBTF

Sens. Sherrod Brown, D-Ohio, and David Vitter, R-La., are planning to push for legislation authorizing a Government Accountability Office study that would estimate the value of the economic benefits large banks receive for being “too big to fail.”

Under the bill, the GAO would be directed to look at bank holding companies with $500 billion or more of consolidated assets to assess whether the institutions receive favorable debt pricing and funding treatment because of “perceived government support.” The office would also be directed to measure any favorable economic benefit from the 2008 bailouts and from existing safety nets provided by the Federal Reserve Board and the Federal Deposit Insurance Corporation.”

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Read full American Banker article here

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