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But recent studies suggest that that funding advantage has nearly disappeared.
A recent Fed study put big banks' funding advantage at more than 30 basis points.
In other words, the funding advantage of global megabanks is going to be reduced, one way or another.
This gives Germany's mortgage banks a huge funding advantage: as much as 15 basis points compared with European rivals.
There is a growing chorus of Wall Street "deniers," claiming that big banks do not actually receive any funding advantage.
"However, some submissions argue that large banks also benefit from a funding advantage because they are perceived as being too big to fail," it said.
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Rugby union is the national sport of Georgia, with all the funding advantages that brings.
No other bank or private equity player could make the same cost savings, and almost none enjoyed the same funding advantages.
The interim report said the banking sector was competitive but large banks derived funding advantages from their size and sophisticated risk management systems.
The good news at the end of last week was that the Senate unanimously decided that the United States should go in another direction, by ending the funding advantages of megabanks.
With long-term debt funding advantages and lender-friendly services, Freddie is swiping market share from rival banks and thrifts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com