Government doesn't create "jobs" in any meaningful way. A business engages in wealth creation and hires workers to accomplish that end. The employees are paid from the wealth created by the company and if it the enterprise creates no wealth, then it ceases to exist. The government does not create wealth. That means two things - almost every single person "employed" by the government doesn't do anything productive and every single government employee's salary must be paid by the people who ARE engaged in productive, wealth creating enterprises. The only way for government to get that money from the productive to pay its increasing orc army is rising taxes. Of course, taxes have an incentive effect on the productive. Why toil and risk when you're barely scraping by after taxes? So, the productive activity of a country continually declines, as does the ability to pay these government employees. Soon, you get what we now have in Greece - you run out of other people's money. They government creates bullshit every time it touches something, but it never creates anything of any value to anyone except the political class who wield their power for their own personal gain.
Bailing them out the first time creates the kind of moral hazard and perverted incentives that ENSURE that there will be more bailouts of more "too big to fails" in more industries. Keep in mind that the "strong regulation" doesn't prevent too big to fails that make the system more fragile but creates them in the first place. To really get rid of this problem, we need less regulation and more freedom for people to set up firms to compete with the too big to fails so that none of the too bigs become so big that there isn't any other firm that could take over their businesses when they do fail. We also need a strict "no bailout" policy.