Forget asking banks to dump proprietary trading. Just charge them a huge FDIC rate for doing so.

[dkf]

And charge them based on the total cost they would create to the system should they fail.

FDIC insurance is hugely mispriced. It needs to take into account the considerable likelihood of a big bank failure if there is no government backing for big banks.

[jwirr]

1. Or no regulation.

[dkf]

2. Too many congresspeople will protect these guys

We've got to prepare better since nothing is being done to curb these practices now.

[brentspeak]

3. As will Geithner and For-banks-need