Do Bank of America Corp (BAC) and Citigroup Inc. (C) Need This Subsidy?

What would happen to Bank of America Corp (NYSE:BAC) and Citi if this goody bag was suddenly unavailable? Normally, I wouldn’t count on anything being done on this score, but Ben Bernanke’s appearance before the Senate Banking Committee last week might have lit a match under this issue.

When the Fed Chair was asked by freshman Senator Elizabeth Warren whether or not banks should be paying for this subsidy, he responded that banking reforms are attempting to change the need for such a helping hand. Also, when pressed, he said he believed the subsidy should end.

Nothing may happen, at least for a while — but each time this subject comes up, it gets a little more oomph behind it. It looks like B of A and Citi had better get going on the mortgage-lending biz, or both may find themselves with very irate investors in the not-too-distant future.

The article Do Bank of America and Citigroup Need This Subsidy? originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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