A recent IMF report said that systemically significant financial institutions in the U.S. received an “implicit subsidy” of $15-$70 billion in 2011-12. The IMF noted that “subsidies fell … at the time of the discussion and passage of the Dodd-Frank Act, and have not increased substantially since.” The IMF observed much larger implicit subsidies in the eurozone, Japan and the United Kingdom.
The study was part of the IMF’s Global Financial Stability Report. It covers a period when only a few Dodd-Frank regulations intended to address too-big-to-fail had been written and implemented and preceding the implementation of Basel III capital and liquidity standards.
Read the report.