In the Oct 27 Forbes, there is Prof. Luigi Zingales' "Cramdown ... How to fix the credit mess with a government bailout: quickie bankruptcy ...Banks would be allowed to convert debt to equity."
The idea is to create a special Chapter 11 process to allow banks to reorganize quickly. Read it. I like it a lot. Before we dive into unlimited ad hoccery, let's adapt something that we have a lot of experience with, the Chapter 11 process. We have a good bit of the learning already accomplished.