The problem as I understand it is that those large companies hire thousands of skilled workers, and are often the only source of employment in some regions. If they go under, they bring a significant segment of the population with them.
And how is that different from thousands of small businesses who went under with nary a peep? Of all of the others who put their eggs in one flimsy rotten basket?
The way I see it too big to fail is always just special pleading furiously rationalizing from being spoiled by status. There is no logical reason to give them special treatment in spite of all of the stupid human hierarchy tricks. I see it no different than demanding that a rich kid who killed someone driving drunk be treated as "making a mistake" and anyone else as "proven an irredemable waste of human life".
The only sane and just thing is equal treatment. Either everyone can get bailouts or nobody can. The favor for a few approach doesn't work morally or practically - just producing more spoiled nitwits who can and should be replaced. There are no redeeming circumstances or grand sacrifices on their part to justify special treatment.
