The FDIC generally prefers to just pay off depositors of a failed bank rather than have another bank purchase the failing institution.

Question

Quizplus · Accepted Answer

The FDIC often prefers to arrange for another bank to purchase a failing institution because this approach can be less disruptive for customers and can help maintain stability in the banking system. It also often results in a lower cost to the FDIC's Deposit Insurance Fund compared to just paying off depositors.

The FDIC Generally Prefers to Just Pay Off Depositors of a Failed