Sheila Bair, former chairwoman of the FDIC, has five bank-policy suggestions for whoever captures the presidential election — from halting bailouts to ending credit derivative speculation, according to The Fiscal Times.

She listed the five steps in a speech at the 2012 National Association for Business Economics Annual Meeting in New York:

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

1. Make a commitment to end bank bailouts
The government was lucky to make money this time around, but don’t count on that again, Bair says. “The market needs to punish the boneheads.”

2. Break up “too big to fail” banks
The regulatory changes implemented since the 2008-09 financial crisis haven’t erased this issue.

3. Set leverage ceilings for large banks
Leverage needs to be limited to prevent Wall Street’s “idiotic new innovations” from wreaking havoc, she says.

4. End credit derivative speculation
Just like you can't buy fire insurance on someone else’s house, you shouldn’t be able to buy insurance on another entity’s loan defaults.

5. Disable the revolving door between regulators and banks
This would make regulators a lot less beholden to banks, she says. “If you did this, you would end up with a much more stable regulatory system.”

Rochdale Securities bank analyst Dick Bove takes issue with Bair’s view on too big to fail.

"I challenge anyone to explain which major nation in the modern world today or over the past five centuries has operated as a successful sovereign power without too big to fail banks," he writes in a commentary obtained by CNBC.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.