Simon Johnson: 'Indefensible' To Say Big Banks Don't Have Any Advantage

Simon Johnson: 'Indefensible' To Say Big Banks Don't Have Any Advantage
WASHINGTON - JULY 17: In this handout image supplied by the International Monetary Fund (IMF). International Monetary Fund's Economic Counsellor and Director of the Research Department Simon Johnson (R) and Deputy Director Charles Collyns (L) hold a press briefing on the release of the IMF's World Economic Outlook at the IMF Headquarters July 17, 2008 in Washington, DC. The IMF raised its growth forecasts slightly but stated the chance for a global recession. (Photo by Stephen Jaffe/IMF via Getty Images)
WASHINGTON - JULY 17: In this handout image supplied by the International Monetary Fund (IMF). International Monetary Fund's Economic Counsellor and Director of the Research Department Simon Johnson (R) and Deputy Director Charles Collyns (L) hold a press briefing on the release of the IMF's World Economic Outlook at the IMF Headquarters July 17, 2008 in Washington, DC. The IMF raised its growth forecasts slightly but stated the chance for a global recession. (Photo by Stephen Jaffe/IMF via Getty Images)

In testimony to the Senate Banking Committee this week, Ben Bernanke made a clear statement acknowledging that very large American banks receive implicit subsidies because the market believes they are too big to fail. This was one of the most forthright public statements on this topic by a top Fed official, and Mr. Bernanke should be congratulated for being honest and direct on this important point.

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