Special Bankruptcy for Too Big to Fail

In the past, I have supported regulations, additional fees, etc. to discourage institutions from becoming and remaining "too big to fail."

The concept of living will, etc. are intriguing -- but seems rather impractical.

What has been impressive is the speed in which the government was able to put Chrysler and GM through bankruptcy.

The "easy" solution to "too big to fail" seems to be [legislated] bankruptcy for large financial institutions (and other conglomerates). This should definitely mandate speedy process. The good bank, bad bank is probably worth including as well.

If the government needs to fund the good bank temporarily -- we need to make sure tax payers get preferred returns to old equity AND DEBT holders.