Ever since I can remember the major money center banks have gotten into trouble loaning money globally to foreign countries, governments and mega corporations, falling on their ass and then getting bailed out. Through the 1970's commercial banks were limited to banking in their own states and skirted the intent by making stupid foreign loans, eventually getting a haircut or giving one to the US taxpayer. Illinois went further and prohibited branch banking within the state. Savings and Loans took money from local depositors and made local real estate loans.
When Congress allowed the S&L's to pretend they were commercial banks, Wall Street raided them as a source for junk bonds, another banking debacle, another bailout. Now we learn this morning that Wall Street Aristocracy Got $1.2 Trillion From Fed
We do not need government support for anything to do with Wall Street, no more than we need government support for Las Vegas casinos. Let them do what they want and if they fail, tough shit. All real estate mortgages should be done on a local level. Banking should be a state function and should be de-federalized. When a bank reaches a certain size it should be cut-off from all government support and guarantees. Place the risk where it belongs, to the dumb bastards that run them and their investors.