Navigating a Failed Bank Receivership

Summary

Insured depository institutions (IDIs), unlike nonbank or corporate entities, are subject to a specialized insolvency regime under federal banking law that enables the Federal Deposit Insurance Corporation (FDIC) to serve as receiver for a failed IDI (Receiver). In this connection, the Federal Deposit Insurance Act (FDI Act) sets forth various requirements that govern the Receiver's conduct, activities, and operations in connection with any failed bank receivership. This practice note discusses legal and regulatory tools available to the Receiver and provides strategies in working with the Receiver.