They (the Federal Reserve bank JPM) need to wash out the management and assets that led to the default. High probability of fraud. Whose books it goes on matters. It goes on the Taxpayers’ books. If the FedRes didn’t seize the bank and take punitive actions against the managers other banks would fail and say “Oooops, looks like we failed time for the taxpayers to backstop us”
Just remember: Dylan Mulvaney is a little girl and Bud Light is a beer.
Two-thirds of deposits were uninsured. First sign of trouble and depositors ran.