Each depositor insured to at least $250,000 per insured bank

FAQs Regarding Determination of Insufficient Assets

What happens to the deposit money that I think you still owe me?

The FDIC's determination only addresses the insufficiency of funds realized from the resolution of the receivership to make any distribution to general unsecured creditors or any lower priority claims.

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Why did the FDIC do this?

The determination was made because the assets of the receivership are insufficient for any distribution on general unsecured claims and therefore such claims, asserted or unasserted, will recover nothing and have no value. The Federal Deposit Insurance Act establishes the priority for distributing funds from the liquidation or other resolution of an insured depository institution. The Act provides that administrative expenses and deposit liabilities must be paid in full before any distribution can be made to general unsecured creditors or any lower priority claimants. Because there are insufficient assets to make any distribution on general unsecured claims, it was appropriate to have an official statement to that effect.

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I did business with the Failed Financial Institution and still have not been paid; all I received is a Receivership Certificate or Notice of Allowance of Claim.

Unfortunately, even though your claim may have been "allowed" by the Receiver, as evidenced by the Receivership Certificate or Notice of Allowance of Claim, no money will be distributed to you for this claim. Therefore, you will not receive any payment on your claim.

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I am an attorney representing a client who has open litigation against the Receivership. How does this affect our case?

Your client will not be able to obtain any payment from the receivership, even if you successfully pursued the case and obtained a favorable judgment on the claim. Because courts have consistently dismissed actions on prudential mootness grounds, the FDIC as Receiver is requesting that you voluntarily dismiss this litigation and provide the attorney representing the FDIC as Receiver with a court-confirmed copy of the order. If this is not forthcoming, counsel for the Receiver will proceed to file a motion to dismiss your client's action.

While it is never easy counseling a client when further pursuit of a case is inappropriate, it may be helpful to share with your client the fact that voluntarily dismissing the case will allow all parties to avoid the expenditure of unnecessary and wasteful attorney fees and costs and to conserve judicial resources.

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Can I take a tax write-off for the loss of my investment in the Failed Financial Institution?

You may wish to consult the Internal Revenue Service or a qualified tax advisor regarding tax consequences in your individual situation.

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Last Updated 09/16/2013 cservicefdicdal@fdic.gov