This had caused me to re-think my outlook, not only on the performance of my investments, but the solidity and liquidity of the institutions themselves. A more global example was ING Barings bank, where a young analyst was able to bring the largest bank of England down. There are substantial differences between banks and mutual funds. Banks must guarantee to repay depositors in full. So, the question of their own financial integrity is paramount.
Deposits are a general obligation of the bank, and deposits are commingled with bank capital.
As a result, they are heavily regulated and required to maintain capital positions sufficient to back up their promises. If a bank fails, the government may step in to arrange the sale of the bank's assets to another healthier bank. While the owners of the bank may be wiped out, the depositors are usually protected. Mutual funds do not make the same kind of guarantees about repayment. They only redeem shares at the present net asset value of the portfolio.