The problem is that liability still falls upon depositors in a bail-in. So, at the end of the day, it's still the unwitting public's money on the hook in the worst case scenarios, even if it's not a "bail out".

The expedited and more regulated insolvency proceedings are a big improvement and the bail-in provisions help within some lower boundary cases. But if "shit hits the fan", bail-in alone is not going to be enough.

The point is that Wall St won't really be "tamed" until we further minimize the possibility of shit and fan colliding. To do that, we need to further limit the risks investment banks can take on and greatly limit the risks that depository banks can take on.

If we don't do that, we're talking about how to cure the disease as opposed to how to prevent it. The fact is, we need more preventative measures and more cures. The bail-in is a good cure for some situations, but if the patient is too fargone it'd be too little, too late.