On Friday, Senate Banking Committee Chairman Christopher Dodd (D., Conn.) announced he had given up on trying to craft a financial reform bill that would win any Republican support. Sometime today he will present his own idea of what banking reform should look like.Because Dodd couldn't secure a compromise, we know that the bill will look draconian to one side of the aisle and will be fought tooth and nail by the very powerful banking lobby. It won't pass. It can't pass. So, let me be first to say it: No matter what Dodd comes out with, it won't go nearly far enough. Only Paul Volcker's plan of a full reinstatement of Glass-Steagall firewalls between banking divisions is worthy of the partisan argument we will have to endure, no matter what reform bill is proposed. Since reappearing on the scene, the grandfatherly Volcker has as much as disappeared, as it's become unfortunately clear just how little chance the "Volcker plan" has of being enacted. The safeguards brought into being with the banking act of 1932, collectively known as Glass-Steagall, kept our markets safe from cataclysmic destruction for nearly 70 years. The watering down of regulation and ultimate repeal of the act in 1999 opened the floodgates to banking consolidation that brought the lenders under the same roof as the investors. The proliferation of over-the-counter derivatives and the ability of banks to sell and proprietarily trade these instruments led to 30-to-1 or 40-to-1 leverage and bets on everything -- from real estate, to corporate debt, to oil, to even the solvency of sovereign nations, as we have recently seen in Greece. Two central problems need to be addressed by banking reform, and they will require some serious legislation from some serious people. First is the problem of "too big to fail." With so much of the economy's capital engaged on the trading books of a few dominating banks, how can you ignore any blowup, no matter how small it may look, in any capital market? Lehman Brothers proved just how deeply interconnected all the institutions are, as that one failure brought the world's credit markets to the brink and inspired the most massive capital injection in history just to keep the system alive.