Reply #101: I believe we shouldn't be throwing money at insolvent inststutions.

[MercutioATC]

Don't bail them out. Let them be forced into voluntary bankruptcies.

Since we've already done some money-throwing, refuse any further bailouts. If the institution can pay back the money as per the original agreement, great. If it can't, seize it, break it up, and sell off the assets to healthy institutions.

The shareholders and bondholders would most likely (almost definitely) be completely wiped out. Creditors not reimbursed by the proceeds of the sale of assets would take a loss. We'd take a 100% loss on the money we'd already unwisely put in, but that would be the extent of our losses.