I have to argue with your premise.

These are not "bad debts". They are impaired assets.   

They are not "worth nothing". Whoever is in possession of them can realize some (undetermined) portion of their value. But it's the "undetermined" part that's the fly in the ointment.

Since the government will be buying them at a great discount, it is even possible that there may be a profit in them. In any case, the money paid on them now is far from a total loss.

Dave Oesterreich