The Government Accountability Office (“GAO”) issued testimony that was delivered by the Director of Financial Markets and Community Investment, Lawrance Evans, before the Senate Subcommittee on Financial Institutions and Consumer Protection. The testimony focused on a November 2013 GAO report that discussed issues related to government support for large bank holding companies. The federal government maintains programs, frequently referred to as “safety nets,” to reduce the vulnerability of depository institutions that could threaten the health of the banking system and the broader economy. Programs that are generally considered fundamental to these safety nets include the Federal Reserve System’s discount window and FDIC deposit insurance.
See: GAO Testimony.
Related news: GAO Report Examines Government Support for Bank Holding Companies (November 18, 2013).