Skip Nav
Gift Guide
100+ of the Best DIY Gifts Ever
Travel
10 Travel Destinations That Will Dominate in 2017
Holiday Living
This Japanese Method of Gift Wrapping Will Take You 15 Seconds — No Joke!

News Flash: Second Largest Bank Failure Ever in U.S.

IndyMac Bank, the second largest US mortgage company after Countrywide, was seized by federal regulators on Friday. The bank is to reopen today as IndyMac Federal Bank. It will cost the FDIC between $4 billion and $8 billion to recover the assets of the bank's customers, as it guarantees deposits up to $100,000.

Sen. Charles Schumer criticized the Office of Thrift Services for its oversight, "If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today. Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs."

Two weeks before the bank's collapse, the senator sent letters to bank regulatory agencies recommending they intervene in IndyMac's situation. The release of his letters caused a run on the bank and customers withdrew $1.3 billion, which ultimately pushed the bank to its dead end.

Source

Around The Web
Join The Conversation
xoxomer xoxomer 8 years
*** "You" should be the gov.
xoxomer xoxomer 8 years
"Laissez-faire" economy..let it crash. I don't see you bailing the fledgling business owner when times are tough?
REI Will Close Stores on Black Friday
Young Protestor's Mexico Wall Sign Viral Photo
Was Young Joe Biden Hot? | Video
Why Are There Black Screens on Instagram?
Guide to British Royal Titles
Why Young Latinas Voted For Hillary Clinton
Why Are People Burning New Balance Sneakers?

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Afforable DIY & Organization
All the Latest From Ryan Reynolds