When a bank is failing or likely to fail, the bank’s regulator takes action to protect depositors, creditors, and other stakeholders. Depending on the severity of the failure, the FDIC may decide to either close the bank and distribute its assets to creditors, or to sell the bank to another institution. In either case, the FDIC typically provides deposit insurance to protect the depositors’ funds. This insurance guarantees that customers will be able to withdraw their deposits, up to a certain limit. Any money not covered by insurance may be lost in the event of a bank failure. Hence the reason early intervention and statutory administration is so important.