not reaaaally one of these outcomes. this actually just streamlines the same outcome that was already going to occur. I would say everyone would have gotten 90% of their deposits back, at some unknown time in the future, regardless. this just makes it faster, predictable, and at 100% of the deposits.

it really just comes down to the bank's portfolio. the bonds that these exposed banks had were US government bonds and held at a loss. A probably 10% loss.

if the Federal Reserve winds up owning those government bonds, it actually is destroying the dollars it receives from the treasury. which is actually the Federal Reserve's entire plan in tackling inflation.

also, wiping out shareholders destroys wealth.