Receivership
The legal status of a failed bank after its chartering regulator closes it and appoints a receiver -- for US insured banks, the FDIC. The receiver takes control of the institution, pays or transfers insured deposits, sells assets, and settles claims in a statutory order of priority. Most failures are resolved through a purchase-and-assumption agreement, in which another bank buys the deposits and sound assets from the receiver over the closing weekend. Those terms are set by the resolution process -- built to protect insured depositors at the least cost to the insurance fund -- so a failure-sale price is not a market valuation of the franchise.
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