This is very good news. There’s absolutely no reason we ought to set up a system in which these fools can take massive financial risks and expect to not suffer at all when they incur giant losses. Moral hazard must end here. See Brad Delong for what we should pass.
Sure, it is one thing for the Wall Street fat cats who gave out bad loans to go belly up, but when they go down the tubes and credit becomes scarce, college students and families looking for car/home loans will be out of luck.
This is a bill that no one likes, but needs to pass — for everyones sake. In order to defend Main Street, we have to bailout Wall Street — no mattter how unsettling that may be. It’s realpolitk meets economics.