Actually Bond, the "Big Banks" are part of a CLUB that only lets certain parties into it and currently the door is closed. If JPM could not afford to settle this case and it affects the business of the other banks, the other banks and investment funds (GS,MS,Blackrock, stone etc.) will step up and contribute funds to help their partner out of the mess that could injure their business. So in retrospect they protect each other..
And the FED makes loans to help them survive and will fund the deal if necessary.
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