That is what Andrew Rosenfield argues for in this extremely cogently argued piece, and I agree with him. He makes a number of points about the bailout that I hadn’t heard before.
Rosenfield ends the article with the following sage words:
The present practice of subsidizing shareholders and debt holders of large insolvent bank holding companies is unprecedented, improper, and unwise. It is time to take strong capitalist action — and that requires wiping out the existing owners of the insolvent banks and giving the system much needed new equity capital, which, at this time, can come only from the government.