While we have proposals to create a permaTARP, the U.K. is breaking up the big banks:

The U.K.'s top treasury official Sunday said the government is starting a process to rebuild the country's banking system, likely pressing major divestments from institutions and trying to attract new retail banks to the market.

"I would hope that you would have perhaps three new entrants over the next few years," U.K. Chancellor of the Exchequer Alistair Darling said on the BBC's Politics Show.

News reports Sunday indicated sweeping plans to create three new high-street banks from assets sold by bailed out lenders Royal Bank of Scotland, Lloyds Banking Group and Northern Rock.

The WSJ also notes EU's concern of bailed out banks having an unfair competitive advantage over those financial institutions who did not need a bail out.

Wow, look at that, the U.K. and the EU are intent on not rewarding financial institutions who caused the financial implosion and are also doing the obvious, if a bank is too big to fail, it is too big to exist.