Well, apparently they are too big to fail, given that the FDIC is covering them. So they should've been subject to the extra capital requirements that too big to fail banks have.
Should have had more regulation - more stringent reporting and capital requirements (easy to say in retrospect, but they were covered by laws repealed in 2018). It should not be possible for a consumer bank to get into this sort of state so that they are so far from being able to return customer funds.
