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They aren’t insolvent and have assets to more than cover depositors. The FDIC take over is about stabilizing the bank, not destroying it. Why would you let a bank fail if it’s unnecessary ? They have enormous amounts of business relationships along a huge number of dimensions that are fully functional and fine and meaningfully contribute to the lives of millions. Why tear that up? Spite?

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Have they, though, if marked to market? After the deposit outflows this week?

You don’t have to value it marked to market. You can value it as net present value of the hold to maturity value. That’s not a liquid price, but it’s the value if used as collateral against a credit line from the feds.

because the management has failed.

management needs to go. Many, many employees need to go. I'm not sure what % that is, but that's for new ownership to determine

I think all of this is a forgone conclusion. Public intervention isn’t a great career move.

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