To see which banks are currently listed on the Federal Deposit Insurance Corporation watch list, visit its Failed Bank List page at its website. The watch list displays the name of the bank, city and state where the bank is located and the institution acquiring the bank. The bank's official closing date and updated date are also listed.
Failed banks that end up on the FDIC watch list are usually FDIC insured, which means the FDIC takes over the bank and closes it for business. The FDIC often finds a suitable financial institution in good financial shape to buy the assets of the failed bank. The FDIC insures every deposit for up to $250,000, so many depositors are not financially impacted by a bank failure. However, deposits of over $250,000 might be at risk from various entities seeking a return of lost funds, and it's the FDIC's job to settle the closed bank's outstanding debts.
Depositors of a failed bank receive payments from the FDIC up to the maximum amount of insurance. Therefore, a person with $2500 in a checking account is paid dollar-for-dollar under FDIC insurance. Payments also include any interest accrued in accounts up until the time of the bank's closure. FDIC insurance money comes from a deposit insurance fund that all insured banks pay into via insurance premiums.