John Carney — Goldman Wants You To Forget About Too Big To Fail

Goldman Sachs wants you to believe that Too Big To Fail banks do not actually enjoya funding advantage....

The Goldman researchers are practicing a bit of sleight-of-hand here.

CNBC NetNet
Goldman Wants You To Forget About Too Big To Fail
John Carney | Senior Editor

BTW, thanks to John for moderating Mosler v. Murphy.

Joseph Noss and Rhiannon Sowerbutts — The implicit subsidy of banks

A credible threat of failure is an integral part of any industry. But this does not always apply to banks as failure may result in unacceptable economic costs. As a result, unprecedented amounts of public money have been used to avert bank failure. This column explains why the subsidy arises, why it is a public policy concern, and how it can be quantified.

Read it at Vox.eu
The implicit subsidy of banks
by Joseph Noss, Economist, Bank of England, and Rhiannon Sowerbutts, Financial stability economist, Bank of England