I agree with you except I'd go even further. I would demand the resignation of all management that created the need for the bailout, they proved they are incompetent managers. Venture capitalists often put all kinds of conditions on companies they are investing in, especially the more risky ones. The companies needing the bailout are beyond risky, they are bankrupt. Those who save these companies by huge influxes of cash should have their own management team in place and should call the shots. I'm personally against all of these bailouts but if I am required to have mine, my children's and grandchildren's future “mortgaged” to bailout these poorly run companies, I want a say in how they're run.
I too think all of the bailouts are crap. We have such a dynamic capitalist system that when any of these systems go down, 10 more with more competent and able managers will fight to fill the void. Yes, the credit markets would freeze and the sting would be bad for a brief period but I have no doubt that the recovery would be swift and real.
But if we are going to do this bailout, we need to be as draconian as hell with the conditions so as to make the incompetent executives either jump ship or get their act together so they can repay us. They have to know that the gilded age of a 14 trillion dollar monopoly money, shadow banking system with credit default swaps, CDOs, SIVs, MBSs, etc are over.