Which U.S. bank’s 2008 collapse was the largest bank failure in American history?

Washington Mutual’s 2008 collapse was the largest bank failure in American history.

The Office of Thrift Supervision closed Washington Mutual Bank on September 25, 2008, after a severe deposit run and losses tied largely to risky home loans. The Federal Deposit Insurance Corporation sold the bank’s banking operations to JPMorgan Chase for approximately $1.9 billion.

Washington Mutual, commonly called WaMu, had assets of about $307 billion when regulators seized its banking subsidiary. The holding company, Washington Mutual, Inc., separately filed for bankruptcy protection in 2008.

This event is often confused with Lehman Brothers’ failure. Lehman was the largest U.S. corporate bankruptcy by assets, while Washington Mutual was the largest U.S. bank failure. The distinction matters because regulators seized the bank and transferred its deposits and branches rather than allowing the entire banking operation to continue independently.