What happens when a bank fails?
 

I know FDIC insures our savings up to a limit. The limit is way over what I have in savings,but BAC is at a share price of 3.6 down from last years high of about 43.

If it were to fail do I remain liquid throughtout the process? What happens to my mortgage that is held by BAC?

Any insight is appreciated.

My mortgage is currently held by the FDIC. All the finance guys I have talked to say just sit until they sell it to someone. Till then, I just keep making payments to the FDIC.

You are making the payments? Geeze, if everyone did that, maybe the banks wouldn't fail.

This has been discussed in other threads, but you are fine.

You remain liable for your mortgage, of course. Your obligation is not affected by the solvency of the bank.

Your money is FDIC insured, and the FDIC is actually fairly well organized when they go in and take over. After a few days, they will be at your branch, ready to had you a check.

OK thanks guys.

A bank that I use for business accounts "failed" last week. Another bank bought its assets, the FDIC covered the deposits and it is business as usual, unless you were a creditor or shareholder.