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September 30, 2009
Study: Taxpayer TARP money subsidizes biggest banks
A report released today by economist Dean Baker and the non-partisan Center for Economic and Policy Research finds that "the government has essentially formalized the idea that major banks are “too big to fail” (TBTF)....In other words, the TBTF banks can borrow money at much lower rates than small banks whose cost of funds is determined based on their credit worthiness...."
“TBTF could amount to a substantial subsidy which should be a serious concern to policy makers,” Baker continued. “It implies nothing short of a redistribution of money from taxpayers to the very banks that were bailed out last year.” PIRG's TARP Reform pages are here.
Posted by Ed Mierzwinski at September 30, 2009 05:51 PM
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