When a bank fails, the FDIC takes care of the insolvency and any remaining assets. It can offer the failed bank for sale to other healthier banks and have them assume the failed bank's responsibilities. If this is not feasible, the FDIC can payout the insurance from the deposit insurance funds. The FDIC insures deposits up to certain limits set by law. The FDIC also manages any remaining assets from failed banks and works to resolve any claims against them.