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FDIC Hunts for IndyMac Buyer

Feds want to see it as a whole; see more small banks failing in future

By Dustin Lushing, Newser Staff

Posted Jul 14, 2008 2:40 PM CDT

(Newser) – The Federal Deposit Insurance Corporation is looking to sell recently capsized IndyMac as a whole to one healthy bank, an executive told Reuters today. The FDIC took over IndyMac on Friday after nervous customers withdrew more than $1.3B in 11 days. "I don't expect there will be large bank failures," COO John Bovenzi said. "There will be small bank failures."

Customers lined up for hours outside IndyMac branches in California this morning in an effort to withdraw their money. "I feel very stupid for rolling over my CD just two weeks ago when they had all these people here pulling their money out," one told the Orange County Register; a sheriff's deputy had to keep order outside one crowded branch.

Therese Lum reads a sign taped to the front door of IndyMac Federal Bank today in Pasadena, Calif., where customers lined up to pull as much money as they could from the failed financial institution. (AP Photo)

People enter IndyMac Federal Bank Monday, July 14, 2008, in Pasadena, Calif., as customers lined up to pull as much money as they could from the failed financial institution. (AP Photo/Nick Ut)

Charles Tengeri speaks after withdrawing his money from IndyMac Federal Bank today in Pasadena, Calif., where customers lined up to pull as much money as they could from the failed institution. (AP Photo)

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FDIC Hunts for IndyMac Buyer

Feds want to see it as a whole; see more small banks failing in future

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Bank Failures Far From Over

Failures down in 2011, but weak banks are taking longer to recover or die

FDIC Seizes 6 Banks, for Total of 34 This Year

But the pace is down from last year

Quarter of US Households Have Limited Bank Access

Minorities, low-income families hit hardest

Feds Close 9 More Banks

Failures, mostly in west, bring total to 115

Be Very Afraid: Goldman Sachs Is Smiling

High-risk model hasn't changed, could lead to new crisis, says Reich

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FDIC Hunts for IndyMac Buyer

Feds want to see it as a whole; see more small banks failing in future

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OTHER STORIES ON OUR RADAR

money • IndyMac • FDIC • subprime crisis • banks • John Bovenzi

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bank Failures Far From Over

Failures down in 2011, but weak banks are taking longer to recover or die

FDIC Seizes 6 Banks, for Total of 34 This Year

But the pace is down from last year

Quarter of US Households Have Limited Bank Access

Minorities, low-income families hit hardest

Feds Close 9 More Banks

Failures, mostly in west, bring total to 115

Be Very Afraid: Goldman Sachs Is Smiling

High-risk model hasn't changed, could lead to new crisis, says Reich

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?