Huh? And the banks haven't been secretive about their bad debts already?

I think you should research the process of bankruptcy (and the Great Depression) before proposing solutions. Bankruptcy is not evil and does not destroy wealth -- it shoves bad companies aside and makes room for those who stand the best chance of making use of the assets that remain.

It sounds like you're proposing what Japan has been doing for the past decade. Look up "Zombie Corporations Japan" to find out what ultimately happens when you back bad companies with taxpayer dollars to keep them from going bust in order to retain some daft idea of social harmony.

A capitalist system isn't born or sustained by government-managed compromise kicking in when your favourite team loses.