NY Fed Says Megabanks Are Bigger Risk-Takers

Law360, New York (March 25, 2014, 8:00 PM EDT) -- The nation’s “too big to fail” banks have cost advantages over their smaller counterparts and tend to take more risk, according to a series of research papers released Tuesday by the Federal Reserve Bank of New York.

The set of 11 papers by New York Fed economists found that financial institutions feel the need to be more complex to remain viable, and that diversified firms in particular have a leg up on traditional banks.

“The status of too-big-to-fail may give the largest banks a competitive wedge...
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