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September 29th, 2011, 16:33
Don't let the actual bank company fail but totally crucify the top executives. Make them lose their jobs, pay back most of their salaries for the past 10 years (let them keep minimum wage level), forbid them from working in baking for the next 906 years, whatever, but make them pay for their mistakes.

How it works now:
Someone takes over as the CEO of a big bank (really any big company)
They get a signing bonus of millions
They get a good salary and huge stock grants
They have a golden parachute where if they leave they get millions more

So, what is their incentive? Bet the whole thing on incredibly risky behavior! If they fail and get fired so what? They still have the signing bonus and golden parachute (enough for most people to live on for many lifetimes). If they succeed they make bazillions on the stock.
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