Can you hear me OK? annabismedical.com As long as the ‘good bank’ can be identified from the ‘bad bank’ then, if a bank fails, the government can, as a last resort, just nationalise the good bit and leave the losses from the rest with the investors. As long as the two entities are stuctured in such a way as this partial takeover of the good bit by the government can be legally implemented, the good-bank customers can be protected.