The Federal Reserve and other U.S. bank regulators have spent the past decade trying to shore up financial-industry rules to protect taxpayers from having to bail out big Wall Street firms.
Despite those efforts, a new study by researchers at the Fed’s New York branch suggests that bondholders still don’t believe the government would ever let the firms collapse. Those doubts are helping to prop up prices for the bonds of bank holding companies like Action Alerts Plus holding JPMorgan Chase & Co. (JPM) , Bank of America Corp. (BAC) Citigroup Inc. (C) and Wells Fargo & Co. (WFC)U.S. bank regulators
