You're completely right about the problem of socialized losses, but that's a system level problem rather than a problem of individuals - it would exist even if everyone in the financial industry was completely replaced. And it's ultimately a problem created by governments, which implicitly promise to bail out bankrupt institutions if they're "too big to fail" (where how big that is, isn't defined anywhere).
I haven't heard about Dick Fuld, I'll read your link, thanks.