Quite Possibly the largest Bank Failure EVER - RIP IndyMac

[aldreth]

"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."



According to the FDIC, 10,000 IndyMac customers could lose as much as $500 million in uninsured deposits. 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.



IndyMac, with assets of $32.01 billion and deposits of $19.06 billion, is the fifth bank to fail this year. Between 2005 and 2007, only three banks failed. And in the past 15 years, the FDIC has taken over 127 banks with combined assets of $22 billion, according to FDIC records."

[SeattleMoose]

Wamu.....next?

[rent for now]

WaMu is not going to be around in its current form for much longer. This is as plain as the nose on your face. Equity shareholders are likely to get nothing. The question is, what will WaMu look like in 3 years, and who will pick up the pieces as the Fed casts them off?

Washington Mutual Federal Bank coming soon...

[TJ_98370]

As an owner of a WaMu CD, I guess I'll get first hand knowledge of how the FDIC works.
.
These bank failures are starting to get a little scary. Did you note how a run on IndyMac was initiated by a letter written by a NY Senator?

[FreedomLover]

For WAMU account holders, don't worry. Your accounts are fully FDIC insured!

[hesotriflin]

Lets all pool in money to prepare for the WAMU liquidation sale. We could probably pick up WAMU Tower in downtown for cheap.