Say America let's all these banks go under, not allowing BK just go under. Then everyone who has a loan with them: mortgage, student, auto, credit card, HELOC etc gets forgiven and not allow other banks to purchase them up. You want to stimulate the economy and have people buying again. Have people's $1,000-$3000 mortgage reduced to $0. Have student loans reduced to $0. Have credit card debt wiped out. Have the stimulus go towards paying back the money people lost in savings to these banks. Liquidate the capital in all these banks directly to people and businesses who put their savings in them. If my mortgage was wipped out, no doubt I would go out and buy a new car, go out to eat more, and even save a heck of a lot more! I guarantee more people would do the same. New banks would start to spring up to take their place. Credit union and local banks (both who were fisically responsible would have a boom in business and would grow to take the place of these greedy giants). Economist on the board, Is this possible?