No way. The banks always create the problems and then they
stick the taxpayers with fixing it.
Yes, banks fall under the classification of "too important to fail". Without a healthy, functioning banking system, an economy will flounder. This is one reason that, while mostly an advocate of limited government regulation, I think that the banking industry deserves to be highly regulated. No sane government would, or should, allow serious disruption to its banking system.
In Japan , for instance, the problem is not really how many bad loans are on the books but rather how to recognize the losses in a manner that rejuvenates lending to the economy. Japan is an extremely rich country, by any standards, and can handle the losses. The quicker they regard them as spilled milk and get back to business, the better it will be for the rest of the world.
-Robert
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