9.5 Billion - Continental Illinois National Bank and Trust
Then the nation's eighth largest bank, Continental Illinois had suffered significant losses after purchasing $1 billion in energy loans from the failed Penn Square Bank of Oklahoma. The FDIC and Federal Reserve devised a plan to rescue the bank that included replacing the bank's top executives.
It took the FDIC seven years to completely divest itself of Continental Illinois -- the bailout plan had given the government 80 percent ownership over the bank -- through the gradual sale of its share holdings. By 1991, Continental Illinois had been returned to the private sector, but the FDIC had suffered a $1.8 billion loss. Three years later BankAmerica Corp. acquired the bank.
