Six years after the financial crisis, the largest US banks are likely still too-big-to-fail, according to a study released Thursday afternoon by the Government Accountability Office (GAO). That means that these massive financial institutions are still so important to the wider financial system that they can expect the government to bail them out again if they are close to collapse. Even though the GAO study found that this advantage banks enjoy dropped off significantly in 2013, this is a continuing issue, Sen. David Vitter (R-La.), who has introduced legislation aimed at ending bank bailouts, told Bloomberg Thursday. Too-big-to-fail is not dead and gone at all. It exists. -Erika
Posted on: Fri, 01 Aug 2014 19:30:01 +0000