Federal deposit insurance covers deposits up to $100,000,but as part of a doctrine called "too-big-to-fail" the FDIC sometimes ends up covering all deposits to avoid disrupting the financial system.When the FDIC does this,it uses the

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The "purchase and assumption" method is used by the FDIC when it covers all deposits of a failing bank to avoid disrupting the financial system. This method involves selling the assets of the failed bank to a healthy bank and transferring the insured deposits to the acquiring institution.

Federal Deposit Insurance Covers Deposits Up to $100,000,but as Part