If you're referring to Coventree Inc., they were not a bank. Coventree assembled Asset-Backed Commercial Paper and sold it as a "safe" investment but it became a casualty of the financial crisis even though there was still value in the assets. Investors with $1 Million or less all got their money back, larger institutional investors had to wait for a restructuring but in the end got most of their money. Litigation would have just been counterproductive and time consuming, all-in-all it was the best of a bad situation and it didn't cost taxpayers a dime.