This is exactly how things work here in Cyprus and Greece for many years now! These very same people now are responsible to handle the bailout money. But we voted for them. They know better...
The problem is worse as far as it concerns loans here in Cyprus. Let's say I have a loan for 100k to buy a new house. Now I have 90k, I still owe 100k to the bank and I cannot afford to buy the house without a new loan. The same goes for startup fudings, student loands and who knows what else. there is no control over special cases and most of the wealthy ones have already moved their money to foreign banks a few weeks ago. Jobs and salaries are still safe and people will not be on the street. Even I as a student not currently in Cyprus had my account frozen and lost some 100s of euros. I hope the country is now in a way saved but this is still a disaster for some of us. However I don't feel the same for the eurozone and don't see how it is possible to keep Italian banks from drying out during the next few weeks.