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The Nasdaq listed <keyword id="113494" type="General" weightage="20" keywordseo="sify" source="Orion">Sify</keyword> Technologies Ltd will be setting up 200 MW capacity data centres over the next four years with a mix of hyperscale and retail facilities, said a company official.<br /><br />The new data centres will come up in Mumbai, Delhi and Bengaluru where the demand is expected to be more both for colocation and cloud space given the concentration of financial traffic.<br /><br />Entering the data centre market in 2000, Sify over the years has built and operates 10 carrier-neutral data centres, currently offering more than 70 MW at Vashi, Bengaluru, Chennai, Airoli, Noida, Rabale, Hyderabad and Kolkata.<br /><br />Through CloudCover, Sify also services a network of 49 data centres across India.<br /><br />The company said on 21.9.2021, its first data centre at Vashi completed 21 years of uninterrupted operations.<br /><br />"Sify has pioneered and set high standards in the Data Centre space in India ever since the launch of country's first concurrently-maintainable data centre at the Infotech Park in Vashi, Mumbai in September 2000," Raju Vegesna, Chairman said.<br /><br /><strong>SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/corporates/news/zee-entertainment-merges-with-sony-pictures/articleshow/86416420.cms">Marriage Story! Zee gets a white knight in Sony</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/zee-entertainment-shares-hits-upper-circuit-after-two-independent-directors-resign-on-investors-demand/articleshow/86189814.cms">Zee Entertainment hits 33% after two independent directors resign on investor’s demand</a><br />

Sify Technologies to set up new data centres in Delhi, Mumbai and Bengaluru

<ul><li>Domestic AIFs saw tepid activity as residential <keyword id="6354553" type="General" weightage="20" keywordseo="real-estate" source="Orion">real estate</keyword> debt witnessed lower demand.</li><li>Large deals dominated the PE investment in real estate in the first nine months of FY24.</li><li>Commercial real estate continued to attract large fund flows, and PE investors favour equity vs debt. <br /></li></ul>A sharp rise in home sales as well rising office occupancies might be the talk of the town. Yet, private equity investments in the sector remained muted. In the first nine months of FY24, i.e. April to December 2023, <keyword id="189346" type="General" weightage="20" keywordseo="pe-investments" source="Orion">PE investments</keyword> in the sector registered a 26% decline, says a report by Anarock. <br /><br />Investor activity remained tepid due to geopolitical uncertainties as well as a high interest rate environment. The size of domestic investments however declined to 14% of total capital flows to $360 million as compared to $717 million in the same period last year. <br /><br />"Domestic alternate investment funds (AIFs) have seen lower activity levels as their favoured asset class — residential real estate debt – witnessed lower demand for high-cost funds. Strong residential pre-sales and an accommodative stance by state-owned banks have led to reduced demand for capital from the more expensive AIFs," said Shobhit Agarwal, MD &amp; CEO of Anarock Capital. <br /><br />The average ticket size marginally increased to $95 million from $91 million in the same time last year. This is largely due to a mega $1.4 billion deal in which Brookfield India Real Estate Trust REIT and Singapore’s GIC together acquired two commercial assets in Mumbai and Gurugram.<br /><br />The deal also aided the sharp rise in multi-city transactions. Otherwise, Mumbai Metropolitan Region led the transaction league tables in city-specific transactions. The region saw investments flows to the tune of $694 million.<br /><br /><strong>Top 5 real estate PE deals in 9MFY24</strong><br /><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investor<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recipient <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Asset class<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Deal size<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brookfield RE Trust REIT &amp; GIC <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brookfield AMC<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.4 bn<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CPP Investments<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RMZ Corp<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$325 mn<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Morgan Stanley<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prakhhyat Group<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Warehousing<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$85 mn<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blackstone<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Allcargo<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Warehousing<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$76 mn<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Data Center Fund<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sify Infinit Spaces<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Data Center<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$73 mn<br /><br /></td></tr></tbody></table><em>Source: Anarock</em><br /><br /><strong>Office spaces dominate <br /></strong><br />Most of the PE investment flows for the fiscal year flew into office spaces which dominated the big ticket deals. Data centers also became an emerging new asset class for investors. Domestic debt funds also showed interest in commercial projects. Varde Partners had invested $91 million in a Hyderabad based project by Phoenix Group. <br /><br />“The sector’s reliance on IT/ITeS diminished, with manufacturing, BFSI, and co-working spaces contributing to resilient demand. Anticipated growth in the IT/ITES sector is expected as more employees shift to working from offices for 3-4 days weekly,” said Anarock. <br /><br />Residential real estate was also one of the key sectors which saw large deals in 9M FY24. HDFC Capital as well as PAG invested over $60 million in CCI Projects and Kalpataru Group respectively. <br /><br />In times when overall flows softened, large deals dominated the scene. Top ten deals accounted for 87% of the total value of PE investments. In the same period last year, they accounted for 76%. While debt capital also flowed in, equity investments are preferred route for PE investors, which is visibly healthy at 84% of total deals.<br />

Real estate hit its highs in 2023 but slipping PE investments a worry

<div title="Page 1"><p><span><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>President Donald Trump's promise, and subsequent <a href="http://www.businessinsider.com/trump-executive-order-repeal-dodd-frank-fiduciary-rule-2017-2">executive order</a>, to ease Obama-era regulations on Wall Street banks has been a major driver behind the <a href="http://www.businessinsider.com/bank-stocks-are-leading-the-charge-on-wall-street-2017-3">rally in bank stocks</a> since the election.</span></p><p><span>A team of Goldman Sachs analysts led by <a href="http://markets.businessinsider.com/news/stocks/Heres-why-bank-stocks-have-rallied-since-Trumps-win-1001608292">Richard Ramsden, <span>managing director at the firm</span></a>, have come out with a research note exploring the potential benefits for banks from deregulation.</span></p><div title="Page 1"><div><div><div><p><span></span><span>While "the bulk of the regulatory framework will not change," the team noted, "</span>we estimate money centers could see 28% EPS upside vs. our 2018 estimates, while SIFI banks could see mid-teens EPS growth." <span>In particular, "we see </span><span>C (Citigroup), BAC (Bank of America) </span><span>and </span><span>JPM (JPMorgan) </span><span>best positioned," they said.</span></p><p><span><a href="http://markets.businessinsider.com/stock/C-Quote">Citigroup</a> has been the weakest performer among Goldman's 3 picks, up 20% since the election. That's compared to gains of 31% and 49% posted by <a href="http://markets.businessinsider.com/stock/JPM-Quote">JPMorgan</a> and <a href="http://markets.businessinsider.com/stock/BAC-Quote">Bank of America</a> respectively. The broader S&amp;P 500 financial sector stocks are up 24% over the same period.</span></p></div></div></div></div><div title="Page 1"><div title="Page 1"><div><div><div><p><span>"Regulatory changes will be primarily focused on: 1) changes to liquidity and capital standards to support loan growth," they wrote before explaining<span> in detail the likely features of Trump's deregulation drive, "</span>and 2) simplification or rationalization of regulations to reduce the burden on smaller banks."</span></p><p><span>Here's an infographic from the research note explaining the potential benefits for banks.</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div></span></p><p><span>And a table on how much individual banks could benefit from deregulation.</span></p><div title="Page 1"><div><div><div><p><span></span><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div></p></div></div></div></div></div></div></div></div></div></div><p class="tagline">Get the latest Goldman Sachs stock price<a href="http://markets.businessinsider.com/stock/GS-Quote"> here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/most-heated-exchanges-reporters-trumps-latest-press-conference-fake-news-cnn-2017-2">'Sit down! Quiet!': Watch Trump's heated exchanges with reporters in his longest press conference as president</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="95aXNyOTE6kClel_o5H0XM3e4usyECwD" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

GOLDMAN SACHS: Trump's regulatory reform will benefit 3 banks more than the others

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Joe Raedle/Getty Images</span></p><p class="caption">Elizabeth Warren.</p></div><p></p></div></div></strong></p><ul><li><strong>The Senate is close to passing a bill that would roll back a slew of Wall Street regulations.</strong></li><li><strong>Democrats are divided on the bill, with Sen. Elizabeth Warren leading the fight against the measure.</strong></li><li><strong>A solid group of Democratic moderates are in favor of the bill and pushing back against Warren.</strong></li></ul><p>The push to pass the <a href="http://www.businessinsider.com/crapo-wall-street-bank-deregulation-bill-vote-will-it-pass-senate-2018-3">largest rollback of banking regulations</a> since the financial crisis is splitting the Democrats in the Senate in two.</p><p>One the one hand, the banking deregulation bill championed by Republican Senate Banking Committee chair Mike Crapo has garnered the support of a solid group of centrist Democrats who see it as a way to ease restrictions on smaller community banks.</p><p>On the other, more liberal Democrats are blasting the bill as a giveaway to Wall Street and a repeat of the same mistakes that led to Wall Street's collapse.</p><h2>A return to dangerous territory</h2><p>For Democrats opposing the Crapo bill, the legislation is a dangerous rollback of the post-crisis Dodd-Frank regulations and could precipitate another financial crisis.</p><p>The most vocal opponent of the bill, unsurprisingly, is Sen. Elizabeth Warren.</p><p>Warren, a long-time critic of Wall Street and the financial sector, has given a series of speeches in the Senate decrying what she calls the "<span>Bank Lobbyist Act</span>."</p><p>The Massachusetts senator took particular issue with a provision of the bill that would increase the threshold for a bank to be designated a Systemically Important Financial Institution (SIFI) by regulators to $250 billion in assets held from $50 billion currently.</p><p>This would <a href="https://www.wsj.com/articles/senate-lawmakers-reach-tentative-deal-to-ease-post-crisis-bank-rules-1510593991">exempt 26 </a>of the current 38 SIFIs from these tough regulations, including major regional banks like BB&amp;T, PNC, Fifth Third, and SunTrust.</p><p>"<span>It takes 25 of the largest 40 banks in America - those 25 got more than $50 billion in taxpayer bailouts, nobody went to jail - and it says, 'Let's regulate them as if they were tiny little community banks that couldn't do any damage to the economy'," Warren <a href="https://www.nbcnews.com/meet-the-press/meet-press-march-11-2018-n855561">said on NBC's "Meet the Press"</a> on Sunday. "Now, let's be clear, a quarter of a trillion dollar bank is not a community bank."</span></p><p><strong>(<a href="http://www.businessinsider.com/crapo-wall-street-bank-deregulation-bill-vote-will-it-pass-senate-2018-3">Check out more on how the bill will roll back Wall Street regulation»</a>)</strong></p><p><span>Warren has even gone so far as to attack fellow Democrats for their support of the bill. The senator sent out a fundraising email blasting colleagues for voting in favor or the bill and <a href="https://medium.com/@SenWarren/i-call-it-like-i-see-it-on-the-banklobbyistact-48f8258af66a">wrote a Medium post </a>acknowledging that other Democrats are irked at her insistence.</span></p><p>Other Democrats, like Sen. Chris Van Hollen, said that some of the adjustments for smaller banks make sense but agreed with Warren that the current bill takes the deregulation too far.</p><p>"I have some concerns about the banking bill," Van Hollen told Business Insider. "I should start by saying the provisions relating to community banks and credit unions are provisions I support for the most part. In my view, some of the changes with respect to the bigger banks introduce too much risk into the system."</p><h2><span>A needed change</span></h2><p><span>While Warren and others see the bill as a reversal of key protections, a solid bloc of moderate Democrats - especially those in states President Donald Trump won in 2016 - believe that the bill is a sensible approach to tailor regulation to banks based on their size.</span></p><p>Sen. Doug Jones, the recently-elected member from Alabama, argued that the more dire warnings about the financial effects from the bill may too far.</p><p>"I don't think it will [have negative effects]," Jones told Business Insider. "Those banking bills are always a work in progress and I think this is a step for us. It's not a perfect bill, but I think it's a good step forward."</p><p><span>Other Democratic supporters, such as Jon Tester of Montana, say it will free smaller banks in rural states from stifling regulation that has led to a <a href="https://www.hks.harvard.edu/centers/mrcbg/publications/awp/awp37">decrease in the number of community banks</a> in the US.</span></p><p>"We're seeing way, way, way too many banks being eaten up by bigger banks," Tester <a href="https://www.wsj.com/articles/senate-banking-bill-exposes-democratic-rifts-1520847001">told the Wall Street Journal</a>. "If this continues, I don't think we can expect the Wall Street banks to be serving places like Montana."</p><p><span>Opponents of the bill note that the decline in the number of community banks is a long-term trend that <a href="https://www.americanbanker.com/opinion/dont-blame-dodd-frank-for-dwindling-number-of-community-banks">existed for decades before Dodd-Frank</a>.</span></p><p>Some red-state Democrats are even taking on Warren directly. Sen. Heidi Heitkamp gave a speech on the Senate floor on Tuesday to push back at some of her colleagues' concerns about the bill.</p><p><span>"Some of the things that she has said are incorrect, and I cannot let the legislative history of this legislation be what Elizabeth Warren says it is," Heitkamp <a href="https://www.theatlantic.com/politics/archive/2018/03/heitkamp-elizabeth-warren-senate-banking-bill-dodd-frank/555524/">told The Atlantic</a>.</span></p><p><span>Sen. Tim Kaine, the former vice presidential candidate, said that even with the rollback the amount of oversight on the financial sector will still be significantly higher than before Wall Street's collapse.</span></p><p><span>"I just think every bank in this country - if it passes, after this bill passes - every bank will be significantly more regulated than before the fiscal collapse," Kaine said. "By more regulators, but the level of extra regulation is adjusted based on size and risk and that's what I think ought to be done."</span></p><h2><span>An electoral angle</span></h2><p><span>The fight over the </span>bill within the Democratic Party may not just be rooted in policy, but upcoming elections.</p><p>Both Kaine and Tester are up for re-election in 2018 and many strategists have surmised that the support from moderate Democrats is a pivot to the center <a href="https://www.cnn.com/2018/03/08/politics/why-democrats-supporting-republican-bank-bill/index.html">to shore up electoral chances</a>. Ten of the Democratic supporters of the bill are from states that Trump carried in 2016 and are up for re-election this year.</p><p>Senate Minority Leader Chuck Schumer recently came out against the bill after keeping quiet since it moved out of committee in December. Schumer echoed other Democrats, saying the bill's deregulation efforts go too far in easing restrictions on large regional banks.</p><p>At the same time, the minority leader did not stand in the way of Democrats supporting the bill.</p><p>Sen. Joe Manchin, a moderate from West Virginia, <a href="https://www.politico.com/story/2018/03/14/schumer-warren-democrats-dodd-frank-460563">told Politico</a> that Schumer's message on the bill to members was, "Everybody do what they got to do."</p><p>With the pass from the leadership, the Democratic support will likely push the Crapo bill across the line before the end of the week.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/nra-extremism-hurts-gun-owners-members-america-2018-2">HENRY BLODGET: The NRA's extremism hurts gun owners, NRA members, and America</a></h3>        <div>                    </div>    </div>

The push to roll back Wall Street regulation is causing a huge fight among Senate Democrats

<p><div class="KonaFilter image-container display-table"><div><div class="image"><p class="source"><span>AP</span></p></div><p></p></div></div></p>
<p>Yesterday, Max Baucus (D-MT) and Dave Camp (R-MI) introduced a tax reform bill that would force a new asset tax on big Wall Street banks, and naturally Wall Street isn't having it.</p>
<p>The summary of the bill alone is about 200 pages, but for the Street, it all boils down to one simple, nasty debate that's been raging since the financial crisis.</p>
<p>Either Wall Street banks are still too big to fail or they're not.</p>
<p>And, as a result, either Wall Street banks are getting help from the government in order to survive, or not.</p>
<p>The help is the form of a subsidy that lets Systemically Important Financial Institutions [SIFI] borrow at a lower rates than other financial institutions.</p>
<p>Here's how the Camp-Baucus bill talks about the issue:</p>
<p style="padding-left: 30px;">"While tax reform cannot undo Dodd-Frank, it can and should ensure that Wall Street reimburses the American taxpayer for a portion of the subsidy it receives. The Tax Reform Act of 2014 requires that SIFIs reimburse American taxpayers for a portion of this subsidy by:</p>
<p style="padding-left: 30px;">• Imposing a new excise tax on certain SIFIs, as defined by Dodd-Frank.</p>
<p style="padding-left: 30px;">• Requiring these institutions to pay a quarterly 0.035-percent tax on their worldwide consolidated assets in excess of $500 billion."</p>
<p>The way Camp and Baucus see it, their policy is essentially returning a portion of the subsidy banks get from the government back to the American people.</p>
<p>The way Wall Street's men on on The Hill see it, there is no subsidy. Period. And so the tax policy is arbitrary, and will hurt Wall Street's business.</p>
<p>"Chairman Camp's proposal for a new tax on banks violates every principle of his stated goals for tax reform," says Tony Fratto, Managing Partner at Hamilton Place Strategies. "Instead, it will restrict growth, add complexity, and create new distortions. And rather than being broad-based, it's a bill of attainder for a handful of private businesses. It is bad policy towards financial institutions and would be equally bad policy for oil companies, pharmaceutical companies, or whichever firm happens to be the populist target du jour in this way."</p>
<p>Those in the 'there is no subsidy and there is no too big to fail' camp cite S&amp;P reports that have said the "Likelihood Of A Bailout Is Increasingly Less Likely" - of course, in the same breath the <a href="http://www.ft.com/cms/s/0/fb63e7ce-d2a6-11e2-88ed-00144feab7de.html#axzz2uXi6oowA">S&amp;P has said that Wall Street banks are still too big to fail.</a>'</p>
<p>Go figure.</p>
<p>This subsidy debate is not new. Two researchers - Kenichi Ueda of the International Monetary Fundand Beatrice Weder di Mauro of the University of Mainz - <a href="http://www.bloomberg.com/news/2013-02-20/why-should-taxpayers-give-big-banks-83-billion-a-year-.html">wrote that the subsidy lowers bank borrowing costs by 0.8%,</a> ultimately giving banks an additional $83 billion a year.</p>
<p>The Government Accountability Office is on the case as well. And as Senator Sherrod Brown (D-OH) pointed out in a Senate Banking Committee meeting in January, the GAO came to the conclusion that the banks get a subsidy as well.</p>
<p>""[I]t should come as no surprise that the Congressional Oversight Panel for TARP found that the six biggest Wall Street banks received a total of $1.27 trillion in government support," said Brown, "including accounting for 63 percent of the Fed's average daily lending. There are important lessons in this first [GAO] report … <strong>First, megabanks borrowed at a discounted rate against assets that the market was not accepting. And the result is a subsidy for the megabanks.</strong>"</p>
<p>The GAO is continuing its study of this matter, so that is something that both sides on this debate will be watching closely.</p>
<p>At this time last year, Senator Elizabeth Warren (D-MA) was grilling former Federal Reserve Chair Ben Bernanke about the subsidy during a Senate hearing.</p>
<p>And while he said that the subsidy was created by market forces - specifically the market's expectation that banks will be bailed out (so yes, too big to fail) - he came to the conclusion that it had to go.</p>
<p><a href="http://www.businessinsider.com/elizabeth-warren-on-bank-subsidy-2013-2#ixzz2uXgvjGYt">"I think we should get rid of it,</a>" he told Warren.</p>
<p>There is something of a compromise, though, according to Professor Cornelius Hurley, the Director of Boston University Center for Finance, Law &amp; Policy. It's a bill introduced my Congressman Mike Capuano (D-MA) called the 'Subsidy Reserve Act.'</p>
<p>It's an addition to Dodd-Frank that would require banks to hold even more capital to account for the subsidy they receive - a 'Subsidy Reserve.'</p>
<p>"Although it is highly unlikely that this new tax will be enacted, one can easily see H.R. 2266, the Subsidy Reserve Plan being a compromise result," Hurley said in an e-mail, "especially if the GAO subsidy study produces subsidy estimates in the ballpark of Chairman Camp's."</p>
<p>But banks already have to hold more capital then ever due to national and international post-crisis regulation. In that sense, both these policies are distasteful to Wall Street.</p>
<p>So its best if the idea of subsidies goes away all together.</p>
<p>But that is just as unlikely as the passage of this tax reform bill.</p>

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Sify Technologies to set up new data centres in Delhi, Mumbai and Bengaluru

IANS

Real estate hit its highs in 2023 but slipping PE investments a worry

Katya Naidu

GOLDMAN SACHS: Trump's regulatory reform will benefit 3 banks more than the others

Prashanth Perumal

The push to roll back Wall Street regulation is causing a huge fight among Senate Democrats

Bob Bryan,Joe Perticone

The New Plan To Impose An Extra Tax On Wall Street Hinges One One Big Question

Linette Lopez

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