Question

During the 2008 recession what other bank failures occurred besides Lehman Brothers?

Answer 1

During the financial crisis of 2008 there were many banks that failed or were acquired by a large bank due to their sustainability issues and many banks failed because they faced a run on their deposits due to the sudden liquidity crunch because of the default occurring and the widespread doubt that whether which bank will be able to sustain and which will default. Few small banks which either failed or were acquired by other large banks are Douglas National bank, ANB financial NA which was acquired by Security bank, Kansas City, Hume Bank, First Integrity Bank, NA, First National Bank of Nevada, First Heritage Bank, NA, Washington Mutual Bank, Main Street Bank, Meridian Bank , Alpha Bank & Trust, Franklin Bank, Security Pacific Bank, The Community Bank, Downey Savings and Loan. Most of these banks were regional and small banks and the economic crisis affected them severely. One its significantly affected their ability to raise fresh equity and second, they faced run on their deposits which created financial difficulty for them.