It seems to me that the issue of whether or not banks are hedging their trades (recent example is JPM) would not even be under discussion/investigation (and a complete waste of tax payers' hard-earned money) and would disappear if the banks (as deemed "Too Big to Fail") were all taken off such a list and not continually propped up by tax payers. Regulators would not be having these discussions now if they had never propped up the banks in the first place, and every time the markets have dipped since 2009.
The issue really is that banks will always take risks if they know they will always be bailed out...simple as that...and that's where the buck stops...with the regulators and the banks (not the taxpayers). They should do the right thing and accept responsibility for their decisions so that bank depositors can make safe, sound, and informed decisions...that's their right. Information that every depositor has a right to know is whether that bank engages in proprietary trading. They can then choose to bank with another institution that does not, if that better suits their needs and addresses their concerns.