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The collapse of major banks is a catastrophic event for the economy, leading to a ripple effect that can devastate not only individuals but also entire industries. Over the years, the United States has witnessed a number of bank failures, with some of them being among the largest in the nation’s history. Here, we take a look at the top 10 biggest bank failures in US history.

1. Washington Mutual (2008) – With assets of over $300 billion, Washington Mutual’s collapse in 2008 was the largest bank failure in US history. The bank was seized by the Federal Deposit Insurance Corporation (FDIC) and sold to JPMorgan Chase for $1.9 billion.

2. IndyMac Bank (2008) – IndyMac Bank, with assets of $32 billion, was taken over by the FDIC in 2008 after it became insolvent. The failure of IndyMac was one of the early signs of the impending financial crisis.

3. First Republic Bank (1988) – First Republic Bank had assets of $55 billion when it failed in 1988. It was the largest bank failure in US history at the time.

4. Continental Illinois National Bank and Trust Company (1984) – With assets of $40 billion, Continental Illinois National Bank was the largest bank failure in US history prior to the savings and loan crisis in the 1980s.

5. Drexel Burnham Lambert (1990) – Although not a traditional bank, the collapse of investment bank Drexel Burnham Lambert in 1990 had a significant impact on the financial industry. The company had liabilities of $12 billion when it filed for bankruptcy.

6. Bank of New England Corporation (1991) – The failure of the Bank of New England Corporation in 1991 was the largest bank failure in US history up to that point, with assets of $21 billion.

7. Colonial BancGroup (2009) – Colonial BancGroup, with assets of $25 billion, was seized by the FDIC in 2009 and sold to BB&T Corporation.

8. Guaranty Bank (2009) – Guaranty Bank, with assets of $13 billion, was seized by the Office of Thrift Supervision and sold to BBVA Compass in 2009.

9. American Savings and Loan Association (1988) – American Savings and Loan Association, with assets of $30 billion, was one of the largest savings and loan failures during the 1980s.

10. New Century Financial Corporation (2007) – New Century Financial Corporation, a subprime mortgage lender, filed for bankruptcy in 2007 with liabilities of $32 billion, making it one of the largest bankruptcies in US history.

These bank failures serve as a reminder of the volatility of the financial industry and the importance of proper risk management and regulation. While some of these failures were the result of economic downturns, others were due to mismanagement and risky investments. As history has shown, the collapse of major banks can have far-reaching consequences, impacting not only the financial sector but the entire economy.