3 ms·
FDIC announces first bank failure of coronavirus crisis
- PaulHoule 7y agoNote that is the easy scenario for a bank failure: they merge with a moderate sized bank and life goes on.
- pkaye 7y agoWho pays for the losses on the failed bank? The FDIC? How much were the losses in this case?
- CyanLite4 7y agoMost situations—another bank buys them. Sometimes with a deal sweetener from the FDIC (U.S. taxpayer). Extreme cases such as in 2007-2010 the Fed can offer financing deals for another bank to buy those distressed banks.