Can anyone tell me what happens when a bank failes and it is closed........does the FDIC have a team that come in and re-open the bank for business while sale is pending or are bank employees kept on to keep doors open for customers a few days?

If the FDIC finds a buyer - typically the normal employees stay (management is another issue) and the acquiring bank opens the bank the next business day has xx days to decide on which employees to keep. If their is no buyer, the FDIC occasionally operates the bank, but more often it is just closed and the FDIC starts mailing checks to depositors.

Please send me a private email if you have any idea how the process works. It's about to happen to us!

I'm sorry to read this, BankerMama.

Do you know if they normally keep job functions like compliance, BSA, and deposit operations?

Who - the FDIC or the acquiring bank? The FDIC - no. An acquiring bank - they most likely will not keep many of the adminstrative personnel in the long run - but each case is different based on circumstances, size of the banks involved, depth of staff ,etc..

I'm sorry to hear this!

This will help you to understand some of what goes on.

http://www.cbsnews.com/stories/2009/03/06/60minutes/main4848047.shtml