What if my bank fails?1 of 7More than 150 American banks have failed this year as of Dec. 17, and more bank failures are expected as the financial crisis continues. But the government's takeover of a failed bank has been a standard operating procedure for some time."History is pretty clear," says Gary Evans, president and CEO of Palm Desert National Bank in Palm Desert, Calif. "Insured accounts are either paid out soon after a bank closes or the account is assumed by a purchasing bank. The FDIC website states that no insured account has ever lost money."Even though the Federal Deposit Insurance Corp., or FDIC, has developed a well-oiled process for taking over failed banks, the news of such a takeover can be disconcerting to the bank's customers. A failed bank doesn't mean your money is lost. But what can you expect? Related Articles:Guard against bank failureMoney market account time?2010 list of failed banksChecking account do's and don'tsRelated Links:137 banks failed in '09FDIC handles bank crashes3 tips for personal bank loansIs your money market fund safe? advertisement
More than 150 American banks have failed this year as of Dec. 17, and more bank failures are expected as the financial crisis continues. But the government's takeover of a failed bank has been a standard operating procedure for some time.
"History is pretty clear," says Gary Evans, president and CEO of Palm Desert National Bank in Palm Desert, Calif. "Insured accounts are either paid out soon after a bank closes or the account is assumed by a purchasing bank. The FDIC website states that no insured account has ever lost money."
Even though the Federal Deposit Insurance Corp., or FDIC, has developed a well-oiled process for taking over failed banks, the news of such a takeover can be disconcerting to the bank's customers. A failed bank doesn't mean your money is lost. But what can you expect?
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.