I realize that in pure fact it's wholly Mt. Gox's disaster, but it feels a lot broader in terms of perception. As a theoretical parallel, imagine if a small is

I realize that in pure fact it's wholly Mt. Gox's disaster, but it feels a lot broader in terms of perception. As a theoretical parallel, imagine if a small island nation decided to reimagine themselves as a hub for international banking. They loosened regulations, provided incentives for banks to open up there, and generally tried to disrupt the world of money movement. A bunch of banks open up there, of varying levels of quality. One takes the lead, becomes the most visible brand among the worldwide public, and then gets robbed of all of their depositor's money. Not only does it get robbed, it turns out that their security was stupidly lax. Yes, that lead bank is the one that actually screwed up, but in what world isn't that going to reflect poorly on the entire island banking system? Or at least, how is it not going to inject an element of fear into the entire model?