It is going to get worse. MF is just the first to fall.
What happens if BOA goes belly up, and then they start clawing back the money from normal banking customers?
B of A won’t go bankrupt. If they were doing their accounting according to strictly correct principles, B of A would already have been declared insolvent and shut down. Instead, they’re simply not going to recognize all their loan losses, while the Fed keeps them in business.