As Hilzoy says, this is good news:
Under the administration's proposal, companies such as Citi, Goldman Sachs and others in a broad top tier engaged in complex transactions would face stricter scrutiny and have to hold more assets and more cash as cushions against a downturn.
They also would have to anticipate their own demise, drafting detailed descriptions of how they could be dismantled quickly without causing damaging repercussions. Think of it as planning their own funerals -- and burials. [...]
Under the administration's plan, the Treasury could decide to take a company swiftly through a bankruptcy-like process, appointing the Federal Deposit Insurance Corp. as a conservator or receiver. The FDIC currently now only has the authority to take over troubled banks."
While I still think these too-big-to-fail banks should be dismantled now and the idea that these banks would "anticipate their own demise" leaves way too much wiggle room for those great at wiggling, this is a step in the right direction and should be encouraged.
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