One alternative is a "net worth certificate" program along the lines of
what Congress enacted in the 1980s for the savings and loan industry.
It was a big success and could work in the current climate. The FDIC
resolved a $100 billion insolvency in the savings banks for a total
cost of less than $2 billion.
Here is more. Here is an FDIC summary of the program, under the heading "Other Resolution Alternatives." To the extent bank recapitalization is needed, this is the best way to do it. As Andrew Sullivan will tell you, experience really does matter. I would like to see more economists promote this idea as an alternative to Treasury warrants.