Professor Edward Kane:

Let me make sure I break this down. One is what we can do to help taxpayers that would reduce the risk of future crises. If we allow taxpayers to be victims and have their pockets picked, we will have more pick-pocketing. We must step in there and change the incentives so that bankers that pick taxpayers' pockets are immediately shamed for doing so and not enriched. In the current system, if one can increase the value of the government guarantee, other things being equal, that will register as profits. That will allow more pay to be paid to top executives and nothing is done about it until it gets to such a large amount that the system has to be tested.

The question is when it will happen. I cannot give a timeframe, because I cannot predict how quickly this system will be re-established. The low interest rates change many things, but we will not have low interest rates forever. If, for instance, the ECB were to come under pressure, this would be catastrophic.