If the bank does not act swiftly to push the CDS price back down, the regulator seizes the assets, wipes out shareholders and sacks the management. The bank is recapitalised as agoing concern and later sold.
2010 February 22,The Guardian:
At Acromas, the balance sheet is more than £1bn in the red [...] and a pre-tax loss of £300m was recorded in the year to January 2009. But Acromas is still regarded as a viablegoing concern.
