But the problem of banks that are "too big to bail" is even more critical in the big countries, because the systemic impact is not just local but international, and the bailout of the foolish creditors causes moral hazard on a much bigger scale. This is hapenning in the Eurozone where the costs of bad credit decisions are forced almost entirely on the borrowers.
That's why Sheila Blair of the US FDICcapaigned to place an overall limit on bank leverage. They have finally succeeded with the new rule dated 8-April - 2014:
We need a Sheila Blair in Europe.
Source: Heroes in banking reform and prudential supervision
See also http://www.bairblog.com/sometimes-more-is-less-when-it-comes-to-making-regulations-more-effective/