Large Banks Unprofitable Without Government Backing: Penn Study

A new study from a University of Pennsylvania researcher says that the largest “too big to fail” banks would not be profitable if it weren’t government assistance. Large banks reap $102 billion benefit from US government Based on previously reported estimates of the value in a government risk guarantee, the large banks receive “the combined financial advantages and subsidies for the six biggest U.S. banks since the start of 2009 was at least $102 billion.” Report author Nizan Geslevich Packin from the Penn’s Institute for Law and Economics connects the dots, pointing out that follow up studies estimate that “the…