One of the brilliant insights from the neoliberal political project is that if you want to do something brutal that politics won’t sustain, you have “the market” do it. Can’t destroy Medicare? Turn it over to the market it and give people coupons for it that slowly die out. Then it is seen as a natural outcome, even if “the market” here is just the continuation of politics by other means.
This was the insight on financial deregulation from Greta Krippner’s excellent Capitalizing on Crisis, and we can turn that logic on its head. Higher capital will cause “the market” to break up the banks unless they can justify why they should remain the same size. Proving that they are adding value at their current size would be a high hurdle to clear. It would put pressure on size in a way that politicians, even in 2010, didn’t come close to doing directly...
This is the right path forward, and it’s one that should be front and center in the debates.