The simple reason is that it doesn't shovel enough money to those corporations fast enough.

They want to cut taxes on the wealthy even further, and then have the wealthy set up insurance companies against which the hedge funds and banks can make claims.

So instead of using tax money to buy these things, the tax money would be given to the rich who will set up more corporations, staff them, add in overhead and profit, and then pay off losses at a discount. Obviously they won't purchase any more than they have to, and will cherry-pick for the good ones.

Thus "privatizing" an enormous sum of money in the form of overhead and profit, reducing the amount available for purchasing junk mortgages. And leaving the funds and banks very weakly solvent or insolvent anyway.

It's not that they want anyone to go bankrupt, it's that they want a "skim" off the top.

Arf