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What Happens To Patrons' Cash When Bank Fails?

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What Happens To Patrons' Cash When Bank Fails?

What Happens To Patrons' Cash When Bank Fails?

What Happens To Patrons' Cash When Bank Fails?

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  • <iframe src="https://www.npr.org/player/embed/93728811/93728780" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

Banks are failing as a result of the housing crisis. The bust has already produced the third-largest bank failure in U.S. history, and a former chief economist with the International Monetary Fund predicted Tuesday that the global financial crisis is far from over.

In the United States, when a bank fails, deposits up to $100,000 are insured. Renee Montagne talks to David Wessel, economics editor of The Wall Street Journal, about what happens to people with money in a bank that fails.

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