The Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012.
[2][3] At the end of 2022, the US banking industry had a total of about $620 billion in unrealized losses as a result of investments weakened by rising interest rates.
The FDIC is named as receiver for a bank's assets when its capital levels are too low, or it cannot meet obligations the next day.
Second, as the receiver of the failed bank, it assumes the task of selling and collecting the assets of the failed bank and settling its debts, including claims for deposits in excess of the insured limit.
Regulators simultaneously brokered the sale of most of the banks's assets to JPMorgan Chase, which planned to write down the value of Washington Mutual's loans at least $31 billion.