The FDIC is winding down the emergency program which guaranteed debt issued by big banks. Now the question is how will they fare without such assistance. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Federal Reserve Board of Governors, says the those 19 “too-big-to-fail” banks may have been spoiled by the subsidy.
“Attention now will turn to the cost-of-funds gap between those anointed institutions and all others.”
Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu
