Big banks losing funding edge, GAO finds

Study by US GAO suggests biggest banks have less of a funding cost advantage than in crisis years - but is wary of tying it to changed perceptions on likelihood of state support

Big US banks have lost some of the funding advantage they enjoyed over their smaller competitors, according to a report published on Thursday by the Government Accountability Office (GAO). Market observers also believe there is a reduced chance of the US government intervening to prevent the collapse of one of these banks, the GAO found.

"Our analysis suggests that large bank holding companies had lower funding costs than smaller ones during the financial crisis but provides mixed evidence of