Once you get as far as FDIC insurance being involved, the bank generally ceases to exist (ideally via a fire sale to another, more stable bank) and the sharehol

Once you get as far as FDIC insurance being involved, the bank generally ceases to exist (ideally via a fire sale to another, more stable bank) and the shareholders generally get (all but) wiped out, at best. Competent risk management so that doesn't (generally) happen is a core competency for a bank, and if regulators think you're doing it wrong they will come down on the bank's leadership like a ton of bricks. If anybody reading this comment would like to learn more from people who understand the area far better than I do, I would recommend patio11's 'Bits About Money' and Matt Levine's 'Money Stuff.'