Rather than bailing the banks out, they should buy whatever number of shares instead.
The Bank still has liquid assets to continue trading, and the goverment can sell those shares in the future.
While the goverment have shares special rules apply, all management bonuses for the last 10 years need to be repayed within 12 months, no management bonuses while the goverment has shares.
No manager to receive more than a given wage referance point, possibly a politicians wage at whatever level.
The federal manager cannot receive more than the prime minister, a state manager cannot receive more than a state political leader, a branch manager cannot receive more than a council politician.
Jail time sounds good, but remember these people are above the law, so it will never happen.