Top Fed Official: We’re Giving Big Banks ‘An Unfair Subsidy’

“By Jonathan Weber

ASPEN, Colorado June 28 (Reuters) – Large financial firms that have grown even bigger since the financial crisis earn backdoor government subsidies because of a perception that they will be bailed out, a Federal Reserve official said on Thursday.

This offers these big banks lower borrowing costs and a leg up over smaller competitors, said Dallas Fed President Richard Fisher, who has repeatedly called for breaking up institutions seen as too big to fail.

“It’s an unfair subsidy,” he said during a question-and-answer session at the Aspen Ideas Festival. “They have a funding preference.”

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