Bank Failures: 25 Things Everyone with a Bank Account Needs to Know

By Patrick Russo

Article Reprintbanks accounts

A bank failure regularly occurs when a bank’s assets become less valuable than its liabilities. The value of an institution’s assets can diminish for a number of reasons, including an increase of noncurrent loans, a decrease in deposits, or a decrease in the loan loss allowance amount on its books. Some banks are able to recover before the FDIC (Federal Deposit Insurance Corporation) boards up the windows, but on many occasions the government regulatory agency quickly steps in and closes down operations in an attempt to minimize economic damages. The FDIC has closed 16 banks down so far this year, and so as not to waste an opportunity to learn from these failures, here are 25 lessons you, as a consumer, should take in stride:

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