By PAUL JACKSON Published: July 11, 2008
It’s over for the Pasadena-based thrift that once ruled the Alt-A mortgage roost. On Friday evening, the Federal Deposit Insurance Corp. closed Indymac Bancorp Inc. (IMB: 0.28, -9.68%) and its $32.01 billion in total assets, and total deposits of $19.06 billion.
In other words, ladies and gentlemen, we have our first really serious bank failure of the current credit and mortgage crisis, and the fifth FDIC-insured bank failure so far this year. In fact, the fall of IndyMac is the largest thrift failure in history.
As conservator, the FDIC said it will establish and operate IndyMac Federal Bank, FSB — not to be confused with the now-defunct IndyMac Bank, F.S.B. — to maximize the value of the institution for a future sale and to maintain banking services in the communities formerly served by the now-defunct bank.
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