Wall Street is finally getting its comeuppance: Why new global regulations are a vital step in the right direction

www.salon.com|David Dayen

People all over the world have been appalled and infuriated by “too big to fail” banks receiving taxpayer lifelines rather than facing the consequences of their hazardous actions. After the financial crisis, governments vowed to change the rules so this would never happen again, and the public rolled their eyes, cynically figuring that government bailouts of failing banks were as immutable as the seasons.

That public outrage has gradually driven a more robust post-crisis response as we get further and further away from the event, an unusual and encouraging scenario. The latest action, from the global banking regulator known as the Financial Stability Board (FSB), would force the world’s 30 biggest banks to raise over $1 trillion in additional funds that can be used to absorb losses in a downturn.