Reply #6: It is NOT runs on the banks that take them down.

[TexasObserver]

The banks fail because they have loans fail. The Office of the Comptroller of the Currency has bank examiners that look over the books and loans of banks. They require banks to write off bad loans against the bank's capital.

When a bank's capital reaches zero, it is insolvent. That's when the FDIC closes the bank, seizes the accounts, and turns over the accounts to a new bank, operated by some existing bank organization.