Bank Failure

Let's go waaaay back in time. To the Great Depression, to be financially hangry. The quintessential example of bank failure. Money was lost, and people went broke. Trust in The System was crushed. And upon those hard times, the FDIC was born. Federal Depository Insurance Company.

Though bank failures still happen today, large institutions are FDIC-insured. This means that anything $250,000 and under is protected. Even if you're a non-US citizen making that deposit. That said, banks still go belly-up. Thus, the term "bank failure."