Most 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 fi

Most 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.