A banker once told me that the standard way of closing a bank was for the federal regulators to come in and look at the books. Nothing unusual about this as it is a routine thing.

Then the regulators make some suggestions and the bank is free to follow them or ignore them or go beyond what is required.

Then the regulators look at the book again and see if things are getting better. Either they are or they or not.

And if they decide the bank is beyond hope they line up a buyer, rent an office nearby, open up a phoney storefront, and then, whey they are ready, they call the local police and say we need some help out here. Then the regulators walk across the street and tell everyone to go home while they secure the place. The new owners are also at the storefront so as soon as the building is clear they come in and take over.

In a lot of cases they even have new signs ready to put up, at least in the windows.

A press release is issued and the public and customers go along just like it is business as usual. Because it is.

I have never seen a bank panic first hand, but my Grandfather did. He lost millions in one day of a panic and was in total agreement with the new way of doing things. The system as it is may not be perfect, but I bet for most people it beats losing a few million in one day.