IndyMac Bank’s assets were seized by federal regulators

Accourding to Mercurynews IndyMac Bank’s assets were seized by federal regulators on 11^th July 2008. Regulators said it is the second largest financial institution to close in U.S. history. The bank succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said.

The Office of Thrift Supervision said it transferred IndyMac’s operations to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors’ demands.

IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.

But other bank services, such as online banking and phone banking were scheduled to be made available on Monday.

IndyMac had $32.01 billion in assets as of March 31.

Pasadena-based IndyMac Bancorp Inc., the holding company for IndyMac Bank, has been struggling to raise capital as the housing slump deepens.