Can a bank go bankrupt

Answer 1

Sure.

Many have in the past.

However, if it is an FDIC insured bank, depositis up to 100K per account are insured and will not be part of the BK.

NO!!!!! Not if you mean the type of bank that accepts deposits. There is no provision in the bankruptcy code to allow banks to file for bankruptcy. Therefore, no bank in the US has EVER filed for bankruptcy. Banks, are, however, placed into involuntary receivership by their chartering authority, which is either usually the state banking commissioner/authority in the case of state banks, and the Office of the Comptroller of the Currency for national banks, and the Office of Thrift Supervision for federal savings banks and federal savings and loan associations. On the other hand, banks and s&l's are frequently owned by holding companies which can and sometimes do file for bankruptcy protection.

If you mean an "investment bank", like Lehman Brothers, which is just another name, really, for a stock broker, than, yes, they can file for bankruptcy. Those institutions are not commercial banks, and do not accept deposits, and least not in the legal sense.

NO!!!. Look at §109(b)(2) of the Bankruptcy Code. A bank may not never be a debtor in bankruptcy. Also, Lehman Brothers may not enter into bankruptcy. Lehman Brothers holdinng company may enter into bankruptcy.

Answer 2

Yes. But deposits inn most are insured/backed by the FDIC and regulators...which mean they are secure up to 250,000...and those same regulators will normally run and sell, or handle the bank, so there is virtually no interruption to the depositors.

Answer 3

yes.