The Too Big To Fail Subsidy Is Negative Sixteen Billion Dollars, Or Possibly Some Other Number » On leverage, bonus = you can have higher leverage / less capital, penalty = the reverse. On costs it’s intuitive.

On leverage, bonus = you can have higher leverage / less capital, penalty = the reverse. On costs it's intuitive.

 
If it's 20% then there's like a 7bps TBTF bonus. "Subsidy," even, if you want.

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