On average, between 1980 and 1994, a US bank failed every three days. The pace of bankruptcies peaked immediately after the 2008 financial crisis.[1] The 2008 financial crisis led to many bank failures in the United States. The Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012.[2] In contrast, in the five years prior to 2008, only 10 banks failed.[2][3] At the end of 2022, the US banking industry had a total of about $620 billion in unrealized losses as a result of investments weakened by rising interest rates.[4]
A bank failure is the closing of a bank by a federal or state banking regulatory agency. The FDIC is named as receiver for a bank's assets when its capital levels are too low, or it cannot meet obligations the next day.[3][5] After a bank's assets are placed into receivership, the FDIC acts in two capacities—first, it pays insurance to the depositors, up to the deposit insurance limit, for assets not sold to another bank. Second, as the receiver of the failed bank, it assumes the task of selling and collecting the assets of the failed bank and settling its debts, including claims for deposits in excess of the insured limit. The FDIC insures up to $250,000 per depositor, per insured bank, as a result of the Emergency Economic Stabilization Act of 2008, which raised the limit from $100,000.[6]
The receivership of Washington Mutual Bank by federal regulators on September 26, 2008, was the largest bank failure in U.S. history. Regulators simultaneously brokered the sale of most of the banks's assets to JPMorgan Chase, which planned to write down the value of Washington Mutual's loans at least $31 billion.[7][8]
2008
Twenty-five (twenty-six including the Utah-based wholly owned subsidiary of Washington Mutual, which was covered under the same FDIC closure notice as its parent company)[9] banks failed in 2008[2]
2009
One hundred forty banks failed in 2009[2]
2010
One hundred fifty-seven banks failed in 2010[2]
2011
Ninety-two banks failed in 2011[2]
2012
Fifty-one banks failed in 2012[2]
2013
Twenty-four banks failed in 2013[11]
2014
Eighteen banks failed in 2014[11]
2015
Eight banks failed in 2015[11]
2016
Five banks failed in 2016[11]
2017
Eight banks failed in 2017[11]
2018
No banks failed in 2018.[11]
2019
Four banks failed in 2019[11]
2020
Four banks failed in 2020[11]
2021
No banks failed in 2021.[11]
2022
No banks failed in 2022.[11]
2023
Five banks failed in 2023.[11] A sixth bank, Silvergate Bank, voluntarily wound down operations and liquidated.[12]
2024
Two banks failed in 2024.[11]
2025
Two banks failed in 2025.[11]
2026
As of January 30, 2026, one bank has failed in 2026.[11]
See also
- List of banks acquired or bankrupted during the Great Recession for a list of US banks and non-US banks
- List of largest bank failures in the United States
- Too big to fail
- List of stock market crashes and bear markets
External links
References
- How to Make This the Last Banking Bailout The New York Times, March 14, 2023^
- Failed Bank List Federal Deposit Insurance Corporation, retrieved November 15, 2013^
- Austin G. Robertson Jr. Do you know where your bank is? Shreveport Times, August 4, 2008, retrieved August 4, 2008