And taxpayers would risk losses on bad assets only if a "good bank" ran out of capital completely, minimizing the potential cost and the risk of over-paying for assets.

Any extra cost of capital should be quite limited because the losses from a bail-in resolution are so much smaller than the losses at risk in a liquidation.

If you always have capital to start trading again, you can recoup losses and make money, but if you risk all of your capital on one or two trades and lose it, then the chances are against you.