The idea that the largest global banks have become too unwieldy and threatening -- and that taxpayers should stop encouraging them with billions of dollars in subsidies -- is gaining traction in the political arena. Democrats and Republicans alike are beginning to recognize that paying banks to put the broader economy in danger is bad policy.
In a number of editorials and blog posts in recent weeks, Bloomberg View has sought to explain the too-big-to-fail issue. Some of the points we've addressed: how much of a subsidy the largest financial institutions receive, why the subsidy makes our economy more vulnerable to crises, and how requiring banks to have more equity could go a long way toward solving the problem.
Given the interest in the subject, we thought it would be useful to put links to the relevant articles in one place. Here they are.
- Why Should Taxpayers Give Big Banks $83 Billion a Year?
- Why You Should Care About That $83 Billion Bank Subsidy
- Bank Lobbyists Dispute $83 Billion Subsidy. They’re Wrong