The GAO responded by producing a deeply muddled report that followed the financial industry’s suggestion of focusing almost exclusively on the difference in bond spreads (interest rates on various forms of financing) between the largest banks and some of their competitors. Such spreads are only a small component of the funding advantage for big banks, and they are also highly cyclical – meaning that the advantage for the biggest banks manifests itself the most when markets are under pressure, as they were in the fall of 2008.