The imminent collapse of Guaranty Bank, which will be the largest failure this year, is shaping up as a huge regulatory nightmare. Given its far flung operations and big balance sheet woes, a buyer is not likely to emerge.

Fortune says the clean up will be costly for the FDIC and it will not be wrapped up quickly. Recall that none other than Carl Icahn and Robert Rowling invested $600 million into the bank's parent. Hedge fund managers David Einhorn and Dan Loeb also invested. They, of course, will lose big-time. But the biggest challenge will be reserved for Sheila Bair. The clean ups are just becoming more plentiful and more expensive.

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