The Clearing House Association today released its third research in its Working Paper Series on the Value of Large Banks. The paper examines existing academic literature on bank funding costs, noting the significant decline in large bank funding advantages post implementation of Dodd-Frank reforms. Further, the research paper outlines recent regulatory reforms designed to prevent the failure of large institutions and to resolve the largest and most complex institutions without adverse systemic consequences. These developments are affecting market perceptions of the likelihood that taxpayers will bail out creditors of large institutions in the future. In response, market participants – as well as the leading credit rating agencies – are revising their expectations of taxpayer support of large U.S. banks. The paper also highlights the “taxing effect” on large banks and incorporates the sizable costs of these important and sustainable macro-prudential reforms into an analysis of the overall net competitive effects of government policies on large banks.