It really depends on how the FDIC handles the bank failure. It usually tries to find a "buyer" (i.e., another financial institution) that will take over the bank. This option is preferred because it makes for a relatively seamless transition for bank customers. If that does not happen, the FDIC can—and does—just shut down the bank. It then has to find a "receiver" who will serve to handle direct deposits, etc. until consumers can make other arrangements (i.e., choose a new bank). Then the agency works on getting people's money back to them, although this can take a while to track down all the account owners. Technically, everyone can get their money back, but it could take some time.
For additional information, contact the FDIC's Consumer Response Center, 877-275-3342 (877-ASK-FDIC). The FDIC Web site at www.fdic.gov also has information about failed banks on its home page.
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