A key point missing is defining that criteria in advance. If your market economy rewards buybacks heavily and you didn't know it was a moral hazard, why should your company (and its employees & shareholders) suffer? I can see banning future buybacks until the gov't loan is repaid though.
Bailouts might be necessary, but they absolutely should not be expected. And if the are needed, we should take a piece of your equity for our troubles. If you don't agree to that, which is your right as a business, make do without.
