You’ve got to start the analysis with reality:
Everything must go! That, at least, was the Herbert Hoover approach to a banking crisis. In 1929 he was famously advised by his Treasury secretary Andrew Mellon to “liquidate labour, liquidate stocks, liquidate the farmers, liquidate real estate” to purge the system. The ensuing Great Depression and the rampant poverty it unleashed is the reason why, nowadays, with the brief exception of Lehman’s in 2008, we don’t let banks collapse. It is also why, 15 years after the last financial crisis and thousands of pages of legislation later, we are still bailing out banks.
Using the wrong example to gain the wrong conclusion just isn’t going to lead us to good policy now, is it?