In the financial crisis of 2008/2009, many countries bailed out their banks. The United States not only bailed out some of its banks, but also AIG, a non-bank which was deemed to be "systemically important".
This was greeted with outrage by the public - a large majority of Americans opposed the bailouts at the time, for example.
A key problem with bailing out institutions that are deemed "too big to fail" is moral hazard - as commentators from both left and right have emphasised, it lets "systemically important institutions" get away with making risky or even stupid decisions, and still survive. Meanwhile, they continue to pay bonuses and make investments - with bailout money!
So, are there any strategies that have been implemented that can mitigate these effects? If so, what is the likelihood of successful passage through the U.S. Congress, and what would the expected opposition look like? How can we avoid the "too big to fail" problem reoccurring in future - while maintaining an entrepreneurial economy with investment decisions made by the private sector?