Financial Crisis Accelerates With IndyMac Collapse
Hard times are on the way as evidenced by the collapse of IndyMac. In what will probably turn out to be the most expensive bank failure ever, troubled mortgage lender IndyMac Bank was taken over by federal regulators on Friday, July 11,2008.
All operations of the Pasadena, Calif.-based bank, once one of America’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 ( FDIC). It is estimated that with the takeover the FDIC will incur costs of up to $8 billion.
“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 Friday evening. She added that the IndyMac failure could also affect premiums paid by all banks for deposit insurance.
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