Inefficient Market

We wouldn't have to worry about this kind of corporate waste if the free market worked as advertised. The "inefficiences" that are mentioned below are of the type that the free market is supposed to weed out by driving those companies out of business. The problem is that when everyone is doing well, even these poorly run businesses manage to survive (and profit handsomely.) However, now that everyone is doing poorly, we can't afford to let these businesses fail. This would be the perfect time to weed out underperformers . . . but, there is too much at stake. Our only option is to have the government act as the adult and teach them a lesson through regulation that hopefully they will take to heart in good times. Is government up to the task?