I thought of another way to manage these bank bail outs and it goes like this.
The federal government offers homeowners a refinance loan at 2% fixed interest. This puts money in the pockets of homeowners, while also capitalizing the banks. It takes a bottom-up approach that bypasses the bottlenecks in the financial system (i.e. Bank of America, AIG, and pals). What it does do is make sure that American Taxpayers get bang for their bailout buck.