The Washington Mutual "speed bankruptcy" seems like a good model for the rest of the industry. The FDIC took over the bank, wiped out the shareholders, and immediately auctioned it off to JP Morgan who paid $1.9 billion. Depositors are secure.
Notice that to do the deal, JP Morgan raised $10 billion in the equity markets and their shares rose. Moreover, the issue was oversubscribed so they may go back for more. All this illustrates that at least some of the substitute bridges from savers to investors that I have talked about continue to work (on the latter point see also Arnold Kling and Steve Landsburg).
Hat tip to Garrett Jones.