Big U.S. banks' funding advantage reduced, could rise in crisis: official

Reuters News
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Posted: Jul 31, 2014 10:22 AM

WASHINGTON (Reuters) - The biggest U.S. banks' borrowing cost advantage over smaller competitors appears to have been reduced or eliminated since the 2007-2009 financial meltdown but could return in a crisis situation, a U.S. government official said on Thursday.

Lawrance Evans, director of financial markets at the U.S. Government Accountability Office, said in planned remarks for a congressional hearing later on Thursday that a new report also found that industry participants believe the 2010 Dodd-Frank Wall Street oversight law reduced the likelihood the federal government would bail out big banks in a future crisis.

(Reporting by Emily Stephenson; Editing by Bill Trott)