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What happens to the financial institutions branches, accounts, loans when a bank is closed/fails?

April 26, 2017accounts Bank branches closed fails financial institutions happens Loans

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What happens to the financial institutions branches, accounts, loans when a bank is closed/fails?

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In all situations the regulatory agency has been aware of the struggling financial institutions situation and is normally able to arrange for another financial institution to acquire the struggling institution. In most situations the acquiring financial institution acquires all branches, accounts, and loans. If the regulatory institution is not able to find a buyer then deposits will be covered by FDIC insurance.