Get First Banks 2007 Business Review

The largest bank failure ever occurred when Washington Mutual Bank went under in 2008. At the time, it had about $307 billion in assets. During the uncertainty of the banking crisis, however, Washington Mutual experienced a bank run where customers withdrew almost $17 billion in assets in less than 10 days.

In large part this opposition was based on the very restraints the bank imposed on private, state-chartered banks; this was also seen as an affront to states' rights, and the bank's federal charter was called unconstitutional. In 1811, when the 20-year charter expired, renewal was politically impossible.

In early 2007, subprime lenders began to file for bankruptcy. In June 2007, two big hedge funds failed, weighed down by investments in subprime loans. In August 2007, losses from subprime loan investments caused a panic that froze the global lending system.

Bank Failures in Brief – 2008 Bank Name, City, STPress Release (PR)Closing DateWashington Mutual Bank, Henderson, NVPR-85-2008September 25, 2008Ameribank, Inc., Northfork, WVPR-82-2008September 19, 2008Silver State Bank, Henderson, NVPR-77-2008September 5, 2008AugustBack to top30 more rows

Washington Mutual still ranks first, with $307 billion in assets under management when it failed in 2008.

In 2008, nearly 1,000 companies received bailout funds through the Troubled Assets Relief Program (TARP). Some of the biggest bank bailout recipients included , Citigroup, JPMorgan Chase and Wells Fargo. Other businesses like General Motors and Chrysler also received funds through TARP.

The financial crisis started with Bear Stearns and Lehman brothers. The U.S. government did not bailout Lehman and the institution filed for bankruptcy and eventually closed. Bear Stearns was picked up by JP Morgan and no longer exists.

Silicon Valley Bank collapsed in spectacular fashion Friday just days after it announced big losses, creating the biggest bank failure in the United States since the Great Recession and quickly sparking a government plan to protect depositors.