Here is a chart of the number of banks in the USA from 1926 on. Reduced from 27,000 to about 15,000. Not all were failed banks, as many smaller banks merged with others.

In GD-2, the problem is the monster banks, not the little country banks that are more conservative in their lending practices. The administration has decided the "Too big to fail" banks will not fail. The question is how to keep the biggest bank in the country solvent (U.S. Treasury).