Definitely a good idea and worthy of praise.

The Obama administration is moving forward with one of its most fundamental financial reforms, a plan to constrain the growth and risk-taking of giant banks and other firms.

The plan is the keystone of the administration’s broader effort to reverse a generation of public policy that strongly favored the emergence of behemoths such as Citigroup. The government now wants to pressure such firms to become smaller, more stable and less likely to need the sort of massive federal bailouts that have defined the current economic crisis.

Regulators would require all financial firms to hold larger capital reserves against unexpected losses. The largest firms would be forced to set aside even greater reserves, the rough equivalent of requiring a racehorse to carry more weight.