They probably didn't/don't want to. I assume that there was a fair bit of arm twisting behind the scenes.

They probably didn't snd still don't. If JPM buying Bear Sterns is any metric, I would be worried that the government would 'ask' me to rescue another bank, and then take me to court over it for the next decade.

It's understandable people are mad at the banks and don't want taxpayer money propping up for-profit institutions. But what is the rationale for coaxing companies into taking risks at their behest that they basically know is going to be worse than you think going in?

They don’t want CS to go under either