Privatize the profit, socialize the loss.
I am beginning to think the government should have a role to ensure that no one company is allowed to be large enough to threaten the entire system. I am not usually in favor of more regulation, however the actions of these companies indicate a recklessness that must be contained.
Don't worry that someone is going to pull your free market credentials. Serious economists have long settled this issue, called the welfare theorem. In order to obtain the benefit of a free market you have to have 3 things: 1. NO MONOPOLY (or near equivalent) 2. No information asymmetries, and 3. No externalities.
Money center banks violate all three. Because of the incentives for monopolies to misbehave they have to be regulated to protect the proper functioning of the market.The most ardent (non Randian) free-market economists have long settled the issue. How much regulation, and how do you avoid perverse incentives for the regulators and in the resulting regulation is a serious subject of study that is hotly debated.
You are on solid ground.