Bank failure

Research has shown that the market value of customers of the failed banks is adversely affected at the date of the failure announcements.

The number of bank failures has been tracked and published by the FDIC since 1934, and has decreased after a peak in 2010 due to the financial crisis of 2007–2008.

[1] Under ideal circumstances, a bank failure can occur without customers losing access to their funds at any point.

[citation needed] The failure of a bank is relevant not only to the country in which it is headquartered, but for all other nations with which it conducts business.

This dynamic was highlighted during the financial crisis of 2007–2008, when the failures of major bulge bracket investment banks affected local economies globally.

Outsourcing is a key example of this makeup; as major banks such as Lehman Brothers and Bear Stearns failed, the employees from countries other than the United States suffered in turn.