I think we’ve made a smidge of progress. But not nearly enough. Until the idea of much higher capital ratios at the TBTF banks is broached, then not nearly enough has been done. The TBTF banks are, in substance, utilities and should be treated as such. Higher capital ratios, boring borrowing and lending activities, reasonable pay, 8%-10% ROEs. But it looks like that will have to wait until after the NEXT crisis. The problem is that we might not have a financial system after the next crisis. It’s like that old saying that World War IV will be fought with sticks and stones.

If it was feasible (and the pay was better), I would enjoy working for the FDIC at the policy level for some limited amount of time – like a 2-year professional sabbatical of sorts – and I would be hated and despised by most. But that’s a fantasy of mine that’s unlikely to happen.