Though the Brown-Vitter bill faces challenges from the Obama administration and from the leadership of both parties, it is likely to have an impact on the largest financial institutions either way, as some of the bill's central ideas may pass the opposition.

American Banker's Rob Blackwell explains reasons why if another bank scandal were to arise, Sens. David Vitter and Sherrod Brown's bill would put up a serious fight to eliminate "too big to fail."

Blackwell writes that although regulators are aimed to oppose the Brown-Vitter legislation, another banking scandal could give the bill a burst of momentum, any of the bill's ideas are likely to become a part of other legislation, and the bill could allow regulators to pursue higher capital and regulatory requirements by using the legislation as a cover.

Whether the Brown-Vitter bill is passed or not, it is a serious attempt to eliminate "too big to fail."

For the full piece see "Why the Brown-Vitter Bill Matters - Even if It Doesn't Pass" (may require subscription).