Rutland Herald (VT) (07/14/08); Story, Louise
The Federal Deposit Insurance Crop. has taken over IndyMac Bancorp after the Pasadena, Calif.-based bank continued to lose huge amounts of money daily from depositors. The agency will operate the bank while trying to sell it. With $32 billion in assets as of late March, the IndyMac failure represents one of the largest collapses in the history of U.S. banking. An inability to sell off a portion of its Alt-A mortgage loans started creating problems for IndyMac at the tail end of last year. Some banking industry observers blame a June 26 letter from Sen. Charles Schumer, D-N.Y., questioning the viability of IndyMac for triggering the run on the bank and driving away potential acquirers.
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