Bank Failure

Dictionary Says

Definition of 'Bank Failure'

The closing of an insolvent bank by a federal or state regulator. The comptroller of the currency has the power to close national banks; banking commissioners in the respective states close state-chartered banks. Banks close when they are unable to meet their obligations to depositors and others. When a bank fails, the Federal Deposit Insurance Corporation (FDIC) covers the insured portion of a depositors balance.
Investopedia Says

Investopedia explains 'Bank Failure'

During the financial crisis that started in 2007, the biggest bank failure in U.S. history occurred when Washington Mutual with $307 billion in assets closed its doors. Another large bank failure had occurred just a few months earlier, when IndyMac was seized.

The second all-time largest closure was $40 billion Continental Illinois in 1984.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. National Bank

    In the United ...
  2. Federal Deposit Insurance ...

    The U.S. ...
  3. Bank Run

    A situation that ...
  4. Availability Float

    The time period ...
  5. Silent Bank Run

    A situation in ...
  6. Float

    1. The total ...
  7. Two Name Paper

    A nickname ...
  8. Non-Recourse Debt

    A type of loan ...
  9. Schedule I Bank

    A Canadian ...
  10. Irrevocable Letter Of Credit - ILOC

    Correspondence ...

Articles Of Interest

  1. An In-Depth Look At The Credit Crisis

    The credit crisis reshaped the financial landscape and changed Wall Street forever. Find out how it happened.
  2. Alternative Investments In Your IRA

    If you stray off the beaten path when investing your IRA assets, you'll find new potential pitfalls and rewards.
  3. Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  4. Tired Of Banks? Try A Credit Union

    These nonprofit organizations can provide a range of services for lower fees.
  5. Clearing Up Tax Confusion For College Savings Accounts

    Put your kids through school without being hounded by the tax man.
  6. How To Invest On A Shoestring Budget

    Money is tight when you're young, but don't let that stop you from pursuing future riches.
  7. Debit Card Fraud: Is Your Money At Risk?

    As criminals are becoming more savvy, your money is becoming more vulnerable.
  8. The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  9. Money Market Mutual Funds: A Better Savings Account

    An good alternative to the traditional savings account is the money market mutual fund. It's easy, safe and has better returns.
  10. The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center