How many times do we have to let the same guys stick it to us before we're allowed to throw these SOB's in jail?

On Monday, a bank assesses a property, determines it's worth $1.25million, then writes a loan against it for $1 million. If property values drop 40%, and taxes were 2% and the initial borrower stopped paying a year ago the situation looks like this: Current value of the security: $750,000 less $25000 taxes (which can probably be lowered via negotiation) for net $725000. It might cost another $100000 to sell the property, so the net should be around $600000 or thereabouts, or 60% of the "toxic" loan value. That's a reasonable expectation of the recovery if the loans are all liquidated right away - so the liquidator would get around 12% of the portfolio value of $1.45 billion, or around $150 million for their investment of $59 million. But wait, there's more... if they sell off roughly a third of the portfolio they can get back all their money, then just wait. If inflation runs 4% per year, they will net 20% of 3% (inflation less property tax adjusted to market) or .6% of the entire portfolio value of $1 billion, or the equivalent of $6 million/year in perpetuity.

So guess who is buying the assets? That's right, the same banking system that just dumped them onto the tax payers in the first place. No executives returned any salary or bonuses in the last few minutes, right? So now the same bankers with a new name plate are buying back the same loans in a structure that is not just virtually risk-free, but probably going to return around 18% ROI net, and the taxpayers paid to support the banks, to underwrite the FDIC liquidation, and we're underwriting the loans to purchase the assets via the stimulus program. How many times do we have to let the same guys stick it to us before we're allowed to throw these SOB's in jail?