Government shuts down mortgage lender IndyMac

LOS ANGELES - IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.

The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.

The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors' demands.

IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.

Other bank services, such as online banking and phone banking were scheduled to be made available on Monday.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said.;_ylt=A0WTcSVpYnl...

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The news items also allege 10000 depositors who can't get bailed out by the FDIC. What moron keeps money in a bank over the FDIC limit? And in a bank like Indymac (and Washington Mutual, etc.) that was so thoroughly documented as having severe mortgage weaknesses?

BUT WAIT! It gets even better!:

Dow Jones dives as Hank Paulson rules out rescue of Fannie Mae and Freddie Mac


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