We can end forever the periodic trillion dollar bailouts (invariably by a GOP President) of Wall Street. It is a 'free market' solution that should give a woody to the Ayn Randers (well, maybe not) and requires no legislation. The rule:
The FDIC shall hold personally responsible any employee of an FDIC insured institution (Or any institution that borrowed from any FRB discount window) who received more than $250K in total annual compensation (salary + bonus + benefits) in the previous seven years for any loss that threatens the financial health of that institution.
Under this rule, Jamie Dimon, Ken Lewis, Brian Monynihan, John Thain even Hank Paulson, all the traders at Merrilll Lynch, Morgan Stanley,Goldman Sachs, etc. would pay dearly for what they inflicted on the American taxpayer. They actually would have skin in the game. The FDIC could have gone back to 2005 to get money back from the traders at Merrill Lynch that came close to bringing down Bank of America.
You will suddenly see a major upgrade in internal risk management systems. Banks will suddenly exit the credit derivatives market with an epiphany that there is risk in these markets. Suddenly systems will crop up to deal with rogue traders. You will suddenly see institutions wanting to leave the FDIC system.
This is a variant of a rule that existed for nearly 4 decades in the Savings and Loan industry until the Saint Ronald of Reagan repealed it in 1982 (on the orders of Jimmy Carter, no doubt).
We will, of course, see crocodile tears shed by the likes of Erin "Brains" Burnett and Rush "Man Tits" Limbaugh about the exodus of 'talent' from the banking industry.
I will, regardless, submit the rule in writing to the Nawab of the GOP, Grover Norquist, for his consideration.