Banking in The United States - Bank Mergers and Closures

Bank Mergers and Closures

Bank mergers happen for many reasons in normal business, for example, to create a single larger bank in which operations of both banks can be streamlined; to acquire another bank's brands; or due to regulators closing the institution due to unsafe and unsound business practices or inadequate capitalization and liquidity.

Banks are not allowed to go bankrupt in the United States. Accounts are insured up to $250,000 as of Oct 2008 per individual per bank by the FDIC. Banks that are in danger of failing are either taken over by the FDIC, administered temporarily and eventually sold off or merged with other banks. A list of banks seized by regulators and the assuming institutions can be obtained at Federal Deposit Insurance Corp – Failed Bank list.