Banks rarely lose all their money in a literal sense, but severe liquidity crises, massive asset write-downs, or sudden bank runs can cause historic failures where financial institutions become completely insolvent. Throughout financial history, notable institutions like Washington Mutual during the 2008 financial crisis experienced massive capital collapses that forced federal regulators to seize operations. However, because of federal deposit insurance frameworks, individual everyday depositors do not lose their insured money when a bank fails, as government-backed agencies step in to protect account balances up to statutory limits.