Nice summary and suggestions here from Raghuram Rajan in a piece in the Financial Times.  I continue to believe that the issue of financial leverage (too high debt to equity ratio) is one of the systemic issues in banking.

Desperate times need the right measures

The real problem is the financial system has too little capital. Buying assets at the current depressed market price will not help. And overpaying substantially for these assets will reward the shareholders of the most incompetent or risk-seeking banks, who hold the largest amounts of this now-toxic waste, with the most taxpayer dollars.

…

I would propose a more direct solution. The need of the hour is to recapitalise the financial system. Why not ask the shareholders of financial companies to do it? Financial companies have been reluctant to raise capital thus far.