When a U.S. bank fails, it is up to the FDIC to ensure the stability of the failed bank's assets and deposits so that customers won't lose out when their bank of choice goes under.

To do this, the FDIC can either arrange for the sale of the failed bank's assets to an existing financial institution or directly pay out the failed bank's deposits, as long as they fall within the FDIC's insurance limits. The former "Purchase and Assumption Method" is most commonly used, but requires the FDIC to find a willing buyer, and often must sell assets at a discount, which may potentially cause billions in losses to the FDIC fund.

Stocks rallied Monday, after a wobbly start, as investors were optimistic about the slew of earnings ahead.

Stocks rallied Monday, after a wobbly start, as techs dragged but investors were optimistic about the slew of earnings ahead.

Stocks moved higher Monday, after a wobbly start, as techs dragged but investors were optimistic about the slew of earnings ahead.

Good news for a Monday morning: stock index futures are pointing to a modestly higher open this morning, rather than what happened exactly 22 years ago today - the infamous crash of 1987. 

Nearly a year after the federal rescue of the nation’s biggest banks, taxpayers have begun seeing profits from the hundreds of billions of dollars in aid, the New York Times reports.

Colonial BancGroup, the Montgomery-based real estate lender whose banking unit was shut down by the government and sold to BB&T earlier this month, has filed for Chapter 11 bankruptcy protection.

As Congress spent much of the last three months looking at ways to tighten regulations on financial institutions, some of the biggest bailout recipients increased their spending on influencing legislators.

Credit ratings agency Standard & Poor's on Wednesday cut ratings on 18 banks amid concern about further weakening in the financial sector.

CEOs from several regional banks around the country told CNBC they are seeing some signs of “green shoots” in the housing market.