OHhiker saidThe stockholders of the bailout banks should be the first to pay - let the Board of Directors seek damages against the executives in court to get back payouts and bonuses. When these banks go under, if they owe other banks - turn over good assests to pay the bill. Lots of people will loose their jobs but have to start working for the other banks.
In theory, that's how corporations are supposed to work. They never do. The Boards of Directors should also be assessed personal liabilities for failed policies they nominally permitted, since the executives were chosen & served at their pleasure. But most boards are manipulated by the executive management, and just nod & smile at annual meetings, so they can get their monetary compensation for doing absolutely nothing but look good.
As for the banks, now's the time for another President Andrew Jackson, who hated bankers, and would have hung them all if he had the chance. I'm all for free enterprise, but throughout US history bankers have proven themselves unworthy of the public trust. I say hang them and let banking become a government function.