U.S. banks enjoy 'too-big-to-fail' advantage: Fed study

EMILY STEPHENSON AND JONATHAN SPICER reuters.com A landmark study by Federal Reserve economists found that large U.S. banks enjoy a "too-big-to-fail" advantage in financial markets, joining a heated debate that could influence regulators that are implementing tough new rules for Wall Street. The series of research papers, published on Tuesday by the U.S. central bank's influential New York branch, suggests the biggest banks benefited even after the financial crisis from lower funding and operating costs compared with smaller ones. The researchers used data through 2009, which did not reflect post-crisis reforms. Fed economists also found that the biggest banks can take bigger risks than their smaller peers. to read more: reuters.com