Maybe I'm phrasing what you meant with your third sentence, but one reason the banks would have losses is that 2ct per dollar is only the average and those that could actually pay those 2ct are worth more then those 2ct.
Simple example: 100 people overall, each having a 100000 dollar debt; 20 of them will not be able to pay back anything, 20 are able to pay back 1 ct per dollar, 20 are able to pay back 2 ct per dollar, 40 are able to pay back 3.5 ct per dollar. Those 40 on top will now, too, only pay back 2 ct per dollar and the bank loses 1.5 ct per dollar on them, resulting in 100000 * 40 * 1.5ct = 60000 dollar losses.
Personally I'd like that solution anyway, because it would help to even out the unfair distribution of wealth.
Simple example: 100 people overall, each having a 100000 dollar debt; 20 of them will not be able to pay back anything, 20 are able to pay back 1 ct per dollar, 20 are able to pay back 2 ct per dollar, 40 are able to pay back 3.5 ct per dollar. Those 40 on top will now, too, only pay back 2 ct per dollar and the bank loses 1.5 ct per dollar on them, resulting in 100000 * 40 * 1.5ct = 60000 dollar losses.
Personally I'd like that solution anyway, because it would help to even out the unfair distribution of wealth.