Because its capital has been drained, the money of clients or the society will suffer if there is further loss. Then why is it trusted at the beginning? Because at the beginning, it is its own money that is lost, and I believe the capital fund as collateral represents its credit as well as compensation for the risk. This also applies to bond-related issues.
So I am talking about the most fundamental financial issue. It is about why you can trust a person or an institution. You look at either his record, namely his history accumulated in the past; or how much capital fund, how much money he has chipped in. This is a simple judgment of risk.