First off these people should be fired not rewarded.
Second, the government has no right to tell me that i now have another trillion dollars that i am accountable for.
Third, This just perpetuates the fall that is going to be incurred.
These institutions should have been allowed to fail regardless of the results. If you give risky loans and they fail, that is a business decision that you have to live with. It would have been dark times, but less so then the ones when all the governmental backed corporations get hit.
Free markets will regulate this. What if China called in all the loans, the US would be screwed and not be able to pay unemployment, welfare, social security, home heating, ect.
There is no reason to back up bad decisions by making more bad decisions on a federal level. This only encourages large corporations to make risky decisions because they know they can become to large to fail. Once this happens the government will bail them out.
This is governmental corporate financing. We need to allow these large companies to fail, we do not need to be run by large corporations that influence (and now run) the federal government.
The government needs to realize its role and stay the hell out of these kinds of things. Yes there will be recessions and their will be upswings. This is the economical cycle and it should not be subsidized by the government to make all times peachy, because the fall will be very very very very difficult, instead of very very difficult if we keep letting the government deal with it.