One reader asked about what would happen to his CDs if the deal falls apart, and Countrywide Bank goes under. If your deposits are under the FDIC limits, you don't have worry about losing any money. However, there is a risk that the receiver of the failed bank decides not to continue the CD term. The new bank is free to close the CD early. The early withdrawal penalty would be waived. This is what happened when NetBank closed last year. As I described in this post some CD holders had their NetBank CDs closed early by ING Direct. On the positive side, you are also free to close the CD early without an early withdrawal penalty (see FDIC FAQ).