What does it mean that the First National Bank of Arizona (which was merged into the First National Bank of Nevada on June 30, 2008) is in receivership?
If a bank fails, it is closed by its primary federal or state regulator. The FDIC is then named as the receiver of the institution. Usually there is an assuming bank which enables the closed bank to be reopened immediately after the failure. In the typical transaction, the deposits – and sometimes the loans – are purchased by the new bank. If the FDIC is unable to obtain an acquirer for the loans, they will be handled by the FDIC, which will continue to market them for sale. For a period of time, borrowers may have to make their loan payments to the FDIC.
