A bank failure is the closing of a bank by a federal or state banking regulatory agency.

Generally, a bank is closed when it is unable to meet its obligations to depositors and

other stakeholders. In the event of a bank failure, an insured bank is insured by

Federal Deposit Insurance Corporation (FDIC).

Discuss the TWO (2) methods used by FDIC to handle the bank failure and the

relevant consequences and evaluate the following TWO (2) categories of banking

regulation outline:

Restrictions on asset holdings

Bank capital requirement

Support your analysis with appropriate justifications, examples and/or illustrations.