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
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)
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(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.