Shell games

The other day I was wondering if the government pumped in large amounts of money to a large insurance company (let’s call it A) and the company used the money to “negate” existing contracts with another institution (let’s call it G), by “buying back” securities at par, is that proper use of the money? Is this what is termed as “the avoidance of systemic risk?” In this case, G after having entered into bad transactions, simply walk away with tax payer’s money as if they never entered into those transactions. If this is the case, large number of the US tax payers would like to pretend that we did not buy stocks in 2007 in our 401Ks. We can set up a company (let’s call it B), that can get money from the government and B will then “buy back” all the stocks bought by US taxpayers at the original price (at par). If A used the money in this fashion, both A and G will have to return the money as this was never the intent (or was it?)