Placing the banks in receivship as this would be a necessary prerequisite to prevent taxpayers being forced to guarantee overvalued bonds to the benefit of unsecured foreign creditors. In reference to your article this is what the FDR administration did in conjunction with the HOLC, that is it put the entire US banking system through chapter 11 bankruptcy reorganization, (what we call approximately call receivership). In addition, and which was crucial to make the changes work, the US financial system was placed under new regulation, popularly known as Glass-Steagall, in which its functions where strictly separated. That is, there was a strict separation imposed between the insurance business, commercial banking and investment banking. An institution had to choose the type of business it wanted to be, it couldn’t engage in more than one. This had the advantage of preventing the newly cleaned up commercial banks from speculating with the liquidity they received from the HOLC. Consequently they could only make commercial loans to those parts of the economy which were physically productive, otherwise without the Glass-Steagall regulation, they would have been free to engage in unbridled speculation with the newly created HOLC funds which would only have resulted in destructive hyperinflation. Investment banks could still speculate all they wanted if they chose to continue in that role, but they could only do so with their own capital, there was no central bank discount windows are access to personal deposits of ordinary folks to gamble in the casino economy.
Our banks as they currently lack any similar type of regulation, would continue to speculate on the commodity markets and play the carry trade game with any newly created central bank money. We first need regulation reflecting the principles of strict separations as expressed in the Glass Steagall legislation, before we can create credit, if we wish that the issuance of that credit to reach the physically productive part of the economy. Otherwise the effect of creating money will be destructive hyperinflation, as we are currently seeing play out with the ECB trillion dollar bailout.