California-based Silicon Valley Bank (SVB), the 16th largest bank in the US, was shut down on March 10 by the California Department of Financial Protection and Innovation. This is the second-largest bank failure in the US since 2001. The Signature Bank failure is the third-largest in US history and came just 48 hours after the Silicon Valley Bank collapse. Here’s a look at the largest bank failures in the US in terms of total assets lost.

Bank of New England | Assets: $9.5 billion | Bank of New England's failure in 1991 was a landmark event that reverberated throughout the American banking industry. The bank's risky lending practices and overextension led to its collapse, which caused significant economic repercussions. The failure prompted increased regulatory oversight and became a cautionary tale for the dangers of unchecked risk-taking in the financial sector.

American Savings and Loan Association | Assets: $10.3 billion | In the 1980s, American Savings and Loan collapsed due to the bank's risky investments and inadequate regulatory oversight. The fallout from the ASL failure led to regulatory reforms aimed at preventing future bank failures and ensuring greater transparency and accountability in the banking industry.

Guaranty Bank | Assets: $13 billion | Guaranty Bank during its collapse in 2009 had $13 billion in assets and failed due to high-risk lending practices and the subprime mortgage market collapse. The aftermath left many customers and employees feeling betrayed and uncertain about their financial future.

Colonial Bank | Assets: $25 billion | The failure of Colonial Bank in August 2009 was driven by a massive fraud scheme involving $2.8 billion in fraudulent mortgages, as well as risky lending practices and inadequate internal controls. The FDIC took over the bank and sold its assets to BB&T Corporation, marking one of the largest FDIC-assisted acquisitions in history. The Colonial Bank's failure highlighted the need for stronger regulatory oversight and more rigorous risk management practices to prevent fraud and maintain financial stability.

IndyMac Bank | Assets: $32 billion | IndyMac's risky lending practices and exposure to subprime mortgages led to its collapse in July 2008, resulting in the loss of over $32 billion in assets and a massive run on deposits. The FDIC took over the bank, renaming it IndyMac Federal Bank, and ultimately sold it to a private equity firm. The IndyMac Bank failure highlighted the dangers of reckless lending practices and the importance of sound banking regulations to protect customers and maintain financial stability.

Continental Illinois National Bank and Trust | Assets: $40 billion | The failure of Continental Illinois National Bank and Trust in May 1984 marked a pivotal moment in American financial history. The bank's collapse was driven by risky loans and excessive reliance on foreign deposits, resulting in a run on the bank and a bailout by the Federal Deposit Insurance Corporation (FDIC). The failure led to increased regulatory oversight and a shift away from traditional banking practices. The lessons learned from this event helped shape the modern banking industry and the importance of maintaining a balance between risk and stability.

Signature Bank | Assets: $110 billion | The failure of Signature Bank on March 12 2023 was the third-largest in the United States. Signature Bank was closed by New York state financial regulators as the fallout from the implosion of SVB Financial Group’s Silicon Valley Bank spread to other lenders. The New York-based full-service commercial bank had total assets of about $110.36 billion and total deposits of roughly $88.59 billion as of December 31.

Silicon Valley Bank | Assets: $209 billion | On March 10, 2023, Silicon Valley Bank became the second-largest US lender to fail. The bank took a huge loss on sales of its securities amid rising interest rates, spooking investors and depositors who rapidly began pulling their money.

Washington Mutual Bank | Assets: $307 billion | The failure of Washington Mutual Bank in September 2008 was one of the largest and most dramatic in American history. The bank's collapse was driven by risky subprime lending and lax internal controls, leading to a loss of over $300 billion in assets and triggering a broader financial crisis. Despite efforts to find a buyer, the bank was ultimately seized by the government and sold to JPMorgan Chase. The Washington Mutual Bank failure serves as a stark reminder of the perils of excessive risk-taking and the importance of responsible banking practices to protect both customers and the wider economy.