You raise the issue of personal responsibility. I would like to agree with you (but don't). The idea that people should pay a price for their poor decisions is an appealing one. It would be nice to apply the same reasoning to banks.
Unfortunately the much maligned "nanny state" exists for good reasons. If the adverse consequences of people's stupidity could be limited to the stupid people involved, we wouldn't need a "nanny state". Unfortunately, the damage is rarely limited to those responsible, and often is inflicted, directly or indirectly, on completely innocent bystanders.
If the consequences of allowing the banks to fail where limited to the banker and the bank shareholder, I would happily let the bad banks fail. Unfortunately such damage is never ring fenced so conveniently. When banks fail the costs are born by depositors, other banks, governments and tax payers. If the economy falters because of a banking crisis, we all pay a price.
Like it or not, banks perform an indispensable functions in our society. Without them our society cannot function.
The answer to the problem of our dependence on a stable bank system is regulation and lots of it.
