Ndic liquidates 425 banks

You're likely referring to the 425 banks that were closed or taken over by the Federal Deposit Insurance Corporation (FDIC) during the 2008-2012 period, which was a time of significant financial crisis in the United States.

The FDIC is a government agency that provides deposit insurance to protect depositors in case of bank failures. During the financial crisis, many banks failed or were taken over by the FDIC due to a combination of factors, including:

  1. Subprime mortgage lending: Many banks had invested heavily in subprime mortgages, which were later found to be worthless.
  2. Deregulation: The Gramm-Leach-Bliley Act of 1999 repealed parts of the Glass-Steagall Act, allowing commercial banks to engage in investment activities, which increased their risk exposure.
  3. Global economic downturn: The global financial crisis, triggered by the collapse of the housing market in the United States, led to a sharp decline in economic activity, causing many banks to fail.

The FDIC's actions during this period included:

  1. Closing banks: The FDIC closed or took over 425 banks, which was a record number at the time.
  2. Assisting in the resolution of failed banks: The FDIC worked with other regulatory agencies to resolve the failures of these banks, which involved selling their assets, paying off depositors, and providing assistance to affected communities.
  3. Providing deposit insurance: The FDIC ensured that depositors in failed banks were protected, with most depositors able to access their insured deposits within a few days.

Some notable examples of banks that were closed or taken over during this period include:

  1. Washington Mutual (2008): The largest bank failure in US history, with assets of over $300 billion.
  2. Lehman Brothers (2008): An investment bank that filed for bankruptcy, leading to a global financial crisis.
  3. IndyMac Bank (2008): A California-based bank that was taken over by the FDIC due to its exposure to subprime mortgages.
  4. Wachovia (2008): A North Carolina-based bank that was taken over by Wells Fargo after it failed.

The FDIC's actions during this period helped to stabilize the financial system and protect depositors, and the agency continues to play a critical role in maintaining the stability of the US banking system.