This fails because it ignores the root cause. All banking crises are informational in nature. Circulating more of the right kind of information is nearly all the regulation you need. What information? Positions, live or daily, in detail. No more too big to fail, and many other problems simply disappear.

In contrast, most regulatory proposals betray a belief in installing a tough cop of some kind to combat 'evildoers'. Guess what, the evildoers are just people doing their jobs. We need to tweak the system to stabilize it, and for a regulated industry like banking the government has all the power it needs to do so.