Think of what would have happened in the Bear Stearns case if JP Morgan Chase was unable or unwilling to step in and do essentially a purchase and assumption. Recall that under FIDICIA there are capital-based triggers for corrective action; the bank is closed when it still has positive net worth; the shareholders are wiped out; management is changed, and when the FDIC becomes the receiver, they have the option to set up a temporary bridge bank to pay off depositors and creditors and sell the assets in an orderly manner. So as long as they resolve the bank at.
