Short answer: Put \vspace{-0.1cm} after \LaTeX{} (adjust the size of the space to get the effect you want)
Long answer: I am not getting this extra spacing you are referring to, but in any case I can show you an example so you see how you can reduce the space between lines. The example of text I am using (I just got the first .tex document I had, so ignore what is written):
The way the picture is drawn, it
implies that the bank doesn't
originate loans anymore. Maybe bank
are still originators? \LaTeX{} The
difference now is that they sell the
loans to GSEs and other securitisers
and get securities back? Do they also
securitise loans?
This is what I get:
Now using \vspace{-0.1cm}:
The way the picture is drawn, it
implies that the bank doesn't
originate loans anymore. Maybe bank
are still originators? \LaTeX{} \vspace{-0.1cm} The
difference now is that they sell the
loans to GSEs and other securitisers
and get securities back? Do they also
securitise loans?
This is what I get: