Not bad, but the worst part is that without this subsidy, banks like B of A and Citi would make essentially no profit, and other banks, like JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc. (NYSE:GS), would make a much teensier one. Wells Fargo, possibly because of its gung-ho mortgage business, would fare a bit better.
TBTF banks: Here to stay?
Is it likely that the calls to break up the banks will be heeded? Probably not, even though it seems as if their ability to bring down the whole house of cards is an outsized threat that needs addressing. Even conservative columnist George Will has pointed out how dangerous it is to have the five biggest banks holding more than half of all bank assets.
For now, at least, it’s great to be TBTF. And every day, it’s getting better.
The article 1 Great New Perk for Too-Big-to-Fail Banks originally appeared on Fool.com and is written by Amanda Alix.
Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.
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