Prof Perry Mehrling at Columbia has proposed a regulatory structure where, during a financial crisis, the Federal Reserve would maintain continuity of markets (he calls it 'dealer of last resort"
, rather than bailing out individual financial institutions.
http://www.creditwritedowns.com/2010/04/the-central-bank-as-deal-of-the-last-resort.html
a major benefit of this is: if the Fed guarantees continuity of markets, there is no TBTF institution whose collapse will cause markets to lock up and cease to function.
which means, there is no such thing as TBTF any more, and you can let JPM et al. go bankrupt
also, this potentially has support across the political spectrum, so it could actually be passed
note: the Fed actually ended up being the "dealer of last resort" in 2008, but several months into the crisis, when a lot of economic damage had already been done.
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