I am not enough of an economist or politician to be able to tell you in detail what the ideal compromise is in this situation, nor do I care to claim that I am.
What I do know, however, is things are not black and white. Baying for the banks' blood and shouting "liquidate!" is exactly what they did in 1929 and that kind of behaviour is even more reprehensible than the banks'.
Similarly, handing the banks a giant wad of cash with no strings attached is not right either.
The solution lies in the middle, as always.
Moderation is often a far superior strategy then extremism, but a little of both is not a superior answer to the question: Is this circuit on or off?
The "middle is always right" attitude reminds me of the US media, which will often juxtapose facts and spin, then idly stand by, pointing out that both "extreme" positions are equally valid.