Being in the banking industry (a community bank), I can tell you that forcing banks to loan money is not a good idea. The economy needs to stop being held up artificially by the government and needs to hit the bottom and then start to work its way back on sound lending and investing principles.
The plan presented by the Republicans is a much more comprehensive plan and will not penalize the taxpayers as much.
Read below:
"The Republican plan would prohibit the use of taxpayer money to bail out failing financial giants in the future and impose federal regulation on many but not all trades of complex investments known as derivatives.
Unlike in the Democrats' bill, large banks would not have to help pay for the failure of their peers. It also calls for consumer protections that are narrower than what Democrats and the White House seek, and it would place restrictions of financial assistance to mortgage giants Fannie Mae and Freddie Mac."