It doesn't actually "fail", at least not from the perspective of the makers of the system. The collapse is hardcoded into the system, so what looks like a flaw to us is actually a feature. What we call "Crisis" or "Crash", the central banks call "Christmas", because that's when they get their presents - we call them "collaterals".
That game might change in the foreseeable future, though, because the Internet now is coming for banking.