USA Today: The US economic Meltdown - Regulators seize IndyMac Bank
The US economic Meltdown - Regulators seize IndyMac Bank
IndyMac Bank succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures on Friday when banking regulators seized the mortgage lender's assets. The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think it could meet its depositors' demands. Pasadena, Calif.-based IndyMac Bancorp (IMB), holding company for IndyMac Bank, has been struggling to raise capital as the housing slump deepens.
The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse.
Labels: US, US Economy
