So Much for Reform, Recovery and Enforcement
Struggling Mortgage Lender Taken Over by Regulators IndyMac to Reopen Monday Under Federal Control
By Dina ElBoghdady and Renae Merle Washington Post Staff Writer Saturday, July 12, 2008; D01
Federal regulators yesterday took over struggling mortgage lender IndyMac Bank, the second-largest failure ever of a U.S. financial institution.
IndyMac, which staggered this week under a run on deposits, will reopen on Monday under federal control as IndyMac Federal Bank FSB. Insured deposits there are safe. Regulators estimated that the IndyMac failure will cost the federal bank insurance fund between $4 billion and $8 billion.
IndyMac, one of the nation's largest lenders, got caught in the mortgage meltdown that has led to a global credit crisis. . . .
IndyMac, which is not related to mortgage giants Freddie Mac or Fannie Mae, thrived during the housing boom. It made Alt-A mortgages, which cater to borrowers who provide less documentation about income or employment than traditional loans require.