Regulators seize troubled IndyMac
Feds take over mortgage lender IndyMac. FDIC will seek buyer. May become most expensive bank collapse ever.
By Catherine Clifford and Chris Isidore, CNNMoney.com writers
Last Updated: July 11, 2008: 10:33 PM EDT
NEW YORK (CNNMoney.com) -- In what could turn out to be the most expensive bank failure ever, troubled mortgage lender IndyMac Bank was taken over by federal regulators on Friday.
The operations of the Pasadena, Calif.-based bank - once one of the nation's largest home lenders - were shut down at 3 p.m. by the Office of Thrift Supervision and transferred to the Federal Deposit Insurance Corp.
According to the FDIC, IndyMac's failure will result in up to $500 million in lost deposits out of $1 billion in uninsured deposits held by 10,000 customers. The agency says the failure will cost the Deposit Insurance Fund between $4 billion and $8 billion, based on preliminary estimates.
"It's possible this will be the most costly bank failure in history, but it's too soon to say," FDIC Chairman Sheila Bair said in a conference call late Friday night. The failure could also affect premiums paid by all banks for deposit insurance, she added.
Rest of article is HERE.
This news, coupled with the troubles of FreddieMac and FannieMae...there's some seriously bad economic windstorms blowing. Even worse than we thought.
But, according to Camp McCain - it's all ' mental' for us.