Belly

Are You Off the Hook for Your Loan if Your Bank Goes Belly Up?

Posted by on July 29, 2010
Financial services / No Comments

Archived; click post to view.
Excerpt: As the banking industry continued to hemorrhage in 2008, 25 U.S. banks failed. Among them were Washington Mutual and IndyMac, the first- and third-largest bank failures in U.S. history, respectively, but there were also scores of smaller regional banks throughout the nation. According to the American Bankers Association, 98% of the nation’s 8,500 banks are considered well capitalized, making the chance of any one bank going bankrupt highly unlikely. Still, bank failures increased markedly in 2008 and will likely continue in 2009 under current economic stresses. Most U.S. banks are insured by the Federal Deposit Insurance Corporation (FDIC), so in…

Permanent link to this post (106 words, estimated 25 secs reading time)

Tags: , , , ,