Which Banks failed during the Great Recession? Trump might be causing Bank Failures soon in some areas of the U.S. later this year or after

What Trump is doing will likely cause bank failures this year or the next too sort of like during the Great Recession. The hardest hit were local banks but also bigger bank chains also failed because of the underwater adjustable rate mortgages when people walked away from them and declared bankruptcy.

The cause of the Great Recession was bad loans with adjustable rate mortgages that failed those who had those mortgages so they walked away from them and declared bankruptcy instead of continuing to pay those mortgages. This caused many banks to fail. Bad loans not well thought out with adjustable rate mortgages caused the Great Recession and this caused banks to fail.

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During the Great Recession, a wave of bank failures occurred, with the Federal Deposit Insurance Corporation (FDIC) closing 465 banks from 2008 to 2012, including the largest bank failure in US history, Washington Mutual. 

Key Points:

• Trigger: The Great Recession, which began in 2007 and became a full-blown crisis in 2008, was triggered by the collapse of the housing market and the subsequent failure of risky mortgages and subprime loans. 
  
  

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• Bank Failures: The FDIC closed 465 banks from 2008 to 2012. 
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• Largest Failure: The seizure of Washington Mutual (WaMu) on September 25, 2008, was the largest bank failure in US history. 
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Other Notable Failures: Other notable failures included IndyMac Bank and Colonial Bancgroup. 


Causes of Failures: Many banks failed due to holding large amounts of mortgage-backed securities, which pooled subprime and other poor-quality loans. 


Investment Bank Failures: Investment banks like Lehman Brothers and Bear Stearns also experienced failures, Lehman Brothers filed for bankruptcy and Bear Stearns was acquired by JPMorgan Chase. 


Government Intervention: The government intervened with bailouts and other measures to stabilize the financial system, including the Troubled Asset Relief Program (TARP). 


Impact: The failures and the overall crisis had a significant impact on the financial system, stock markets, employment, and economic activity.