Bridge Bank

Filed Under » , ,
Dictionary Says

Definition of 'Bridge Bank'

A bank authorized to hold the assets and liabilities of another bank, specifically an insolvent bank. A bridge bank is charged with continuing the operations of the insolvent bank until the bank becomes solvent through acquisition by another entity or through liquidation. A bridge bank can be a national bank or a federal savings association chartered or appointed by the Federal Deposit Insurance Corporation (FDIC).
Investopedia Says

Investopedia explains 'Bridge Bank'

The FDIC was given authority to charter these temporary banks by the Competitive Equality Banking Act of 1987. The FDIC has the authority, using a bridge bank, to operate a failed bank for up to three years until a buyer can be found.

Articles Of Interest

  1.

    Too Good To Be True: The Fall Of IndyMac

    Everything seemed to be going right for the bank giant, but it fell just as quickly as it had once risen.

  2. An Overview Of Corporate Bankruptcy

    If a company files for bankruptcy, stockholders have the most to lose. Find out why.

  3. Bankruptcy Protection For Your Accounts

    Will the plan assets you've worked hard for be safe if you experience a personal financial crisis?

  4. Who Backs Up The FDIC?

    The FDIC insures depositors against loss, but what happens if it runs out of money?

  5. The Impact Of Mark Carney Leaving Bank Of Canada To Take Over Bank Of England

    Canada's loss is the U.K.'s gain, as Mark Carney goes overseas to take over the Bank of England.

  6. Bankruptcy

    Learn what happens when an individual or an organization files for bankruptcy.

  7. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) for bank accounts or the National Credit Union Administration (NCUA) for ...

  8. 6 Decisions That Cost Companies Millions

    Here are some of the worst business decisions of all time, made across a broad range of sectors and industries.

  9. Selecting And Managing Insurance Payouts

    Find out which settlement option is right for you before you recieve your funds.

  10. Who Does Wall Street Want For President?

    Wall Street seems to benefit more from a president who favors "laissez-faire" policies.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center