I don't think governments will let banks fail. I think they inject all the liquidity necessary and let the chips fall out in inflation/growth in money supply. You can't really blame banks for this situation. Some coco may get triggered to recapitalize if needed.Potential global financial crisis too and maybe even some bank failures. A huge number of people no longer have income and defaults could rise very significantly. On top of that, the corporate debt bubble has burst and we have not yet began to see the fallout from that.
This is all happening so fast, and I think side effects are still coming. The corporate lending market only started freezing up last week so this is a brand new issue.
It's going to hit the banks hard, IMO