Nationalize them. Fire the CEOs and boards of directors. And all the peddlers of AAA-graded toxic mortgages. They knew what they were doing was wrong. That's why they sold their shares at the top to schnooks. Put these bank thieves in prison. Throw the key away.
Make the needed loans. Break the banks up. Resell them when the economy improves. AND REGULATE THE HELL OUT OF THESE JERKS!