And this is only going to get worse because Citi is a "systemically important financial institution" and therefore now has an implicit government backing for its affairs, just like Fannie Mae and Freddie Mac.
And, quite honestly, the various bank regulators have a fairly robust system of receivership for insolvent/troubled banks, and the nation has a very robust bankruptcy system that can easily handle mammoth business bankruptcies - anyone notice much disaster flowing from Lehman's bankruptcy? Lehman who? Exactly. Put the bank regulators together with the bankruptcy system and I am quite certain that a failing bank the size of Citi could be taken down, squared away, and its deposits, assets, and liabilities all properly taken care of without destroying, or even putting a substantial dent in, the national, or international, financial systems.