But although one can limit the aggregate investment a bank can make in its subsidiary by requiring that such injections be deducted from the capital of the bank, the equity investment in the subsidiary is still funded from subsidized resources, and that subsidy transfer cannot be eliminated.
Thus, both analytically and practically, I think it difficult to deny that banks and their subsidiaries benefit from a federal subsidy, and benefit in ways that an affiliate of the bank does not. Nevertheless, some argue that a parent-subsidiary structure is more efficient than a sibling structure, and must be allowed for a broader range of activities.