A bail out would mean that if you don't, banks and other financial institutions would go bankrupt but it is not the case. If no plan, most of them will survive by downsizing.... whatever the wrong they did.

In case of a plan, because you cannot overnight build several banks and institutions all over the country, you are tempted to use the existing system.

Their mistakes and it's true "reckless behaviour" (CNN has shown former employees testifying of the shameless activities they were imposed to do) has for consequences to stop allowing new mortgages, line of credit for businesses, student loans.....The plan is there to allow them to engage into new operations under I guess a greater scrutinity. No plan will not punish them saddly. It will just punish the economy in general.