Should our "bailout" money be helping with business expansion?

In the Times-Picayune on Wednesday, they reported that Iberiabank, based in Louisiana is getting 90 million dollars of the federal bailout money. This makes you think, oh, of course, this bank is in trouble. However, that isn't true. This is a solvent bank that avoided much of the mess created by the housing crisis. This bank is getting money from the government with the sole purpose of buying smaller banks that are in trouble. The idea is that they'd be able to recapitalize the industry by allowing strong larger banks to buy up smaller, unstable banks, thus preventing bank failures and also, supposedly, helping to inject money into the system. While this sounds good, it is an inappropriate use of funds designed to buy up toxic debts in order to free the banks of those liabilities. At least that's what I always thought the bailout was about. You mean it isn't? At any rate, I'm against the bailout anyway, but this example shows me that the government is trying anything and everything in the hope that something works. This isn't the role of the government. If the government wants to inject money into the banking system, all they have to do is stop borrowing money, pass laws preventing mortgage abuses by banks and consumers, outlaw sub prime mortgages (or at least regulate them tightly) and then, if a bailout is necessary in the eyes of some, stream money into the system by buying the foreclosed homes from the banks at reasonable prices, freeing the banks of the debt load and allowing them to loan money again. This isn't the route the government has chosen and that's not likely to change. While there might be some merit to what this bank is doing, I have another problem with it. The government is concerned about banks being too big, so why now are we using bailout money for overly bloated banks and giving it to smaller banks so that they can become bigger? What sense does that make? None that I can see.