For your “often” do you have an example? The only time I can think of anything like that was the First Republic fiasco where the then FDIC Chairman let his mouth get ahead of his brain. Or are you thinking about when they went from $100,000 to $250,000 on a temporary basis (later made permanent).
The shareholders get wiped out, of course, and the FDIC can also seek to collect cash by unwinding recent transactions like stock sales and such by executives and insiders. The effect is like a summary reorganization in bankruptcy, with claw backs and a new lender or owner injecting capital and setting many of the terms and details.
As applied to the Silicon Valley Bank, my guess is that the FDIC and other state and federal regulators by now have the necessary administrative and federal court orders in place and that the FDIC has negotiated a sale of the bank. An announcement will be made by tomorrow afternoon, with new signage and executives from the new owner in place for the start of business on Monday morning.
For the right new owner, a Silicon Valley Bank with a clean balance sheet is a great acquisition because of its blue chip customer base and deep entree into the venture capital industry.