jakncoke
07-12-2008, 03:52 PM
The federal government said it took control of troubled IndyMac Bank today, in what regulators called the second-largest bank failure in U.S. history.
The Office of Thrift Supervision in Washington, the chief regulator of Pasadena-based IndyMac, said it transferred control of the $32-billion bank to the Federal Deposit Insurance Corp.
The FDIC will reopen the bank on Monday as IndyMac Federal Bank, the OTS said.
"Depositors will have no access to banking services online and by telephone this weekend, but will continue to have access to their funds this weekend by ATM, through other debit card transactions and by writing checks," the OTS said. "Online banking and phone banking services will be available again on Monday."
IndyMac's failure had been widely expected in recent days, as its stock has plummeted to mere pennies a share and some nervous depositors have been pulling their funds.
The bank has been reeling from losses on defaulted mortgages made at the height of the housing boom.
"The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors' demands in the normal course of business and is therefore in an unsafe and unsound condition," the agency said in a statement.
IndyMac's failure is second only to the 1984 failure of Continental Illinois Bank, which had assets of $40 billion at the time.
The FDIC said it had opened a toll-free phone line for customers of the bank. The number -- 866-806-5919 -- will operate today from 3 p.m. to 9 p.m. PDT and then daily from 8 a.m. to 8 p.m. thereafter, except Sunday, July 13, when the hours will be 8 a.m. to 6 p.m.
Customers also can go to the FDIC's website FDIC: Failed Bank Information - Bank Closing Information for IndyMac Bank, F.S.B., Pasadena, CA (http://www.fdic.gov/bank/individual/failed/IndyMac.html) for information.
So much bad news for the US economy as of late really has me wondering if we might slip into a severe recession or even depression.
The Office of Thrift Supervision in Washington, the chief regulator of Pasadena-based IndyMac, said it transferred control of the $32-billion bank to the Federal Deposit Insurance Corp.
The FDIC will reopen the bank on Monday as IndyMac Federal Bank, the OTS said.
"Depositors will have no access to banking services online and by telephone this weekend, but will continue to have access to their funds this weekend by ATM, through other debit card transactions and by writing checks," the OTS said. "Online banking and phone banking services will be available again on Monday."
IndyMac's failure had been widely expected in recent days, as its stock has plummeted to mere pennies a share and some nervous depositors have been pulling their funds.
The bank has been reeling from losses on defaulted mortgages made at the height of the housing boom.
"The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors' demands in the normal course of business and is therefore in an unsafe and unsound condition," the agency said in a statement.
IndyMac's failure is second only to the 1984 failure of Continental Illinois Bank, which had assets of $40 billion at the time.
The FDIC said it had opened a toll-free phone line for customers of the bank. The number -- 866-806-5919 -- will operate today from 3 p.m. to 9 p.m. PDT and then daily from 8 a.m. to 8 p.m. thereafter, except Sunday, July 13, when the hours will be 8 a.m. to 6 p.m.
Customers also can go to the FDIC's website FDIC: Failed Bank Information - Bank Closing Information for IndyMac Bank, F.S.B., Pasadena, CA (http://www.fdic.gov/bank/individual/failed/IndyMac.html) for information.
So much bad news for the US economy as of late really has me wondering if we might slip into a severe recession or even depression.