Peter Wallison and Cornelius Hurley argue in this excellent Forbes article that it would  be highly beneficial for the country if Washington dumped the TBTF idea, which causes banks to take bigger risks than otherwise. Sadly, Dodd-Frank takes us in exactly the wrong direction, institutionalizing TBTF.

Nothing in the Constitution permits any branch of the federal government to bail out anything. There’s the right solution — just abide by the Constitution.