Kishalaya

IndyMac Bank was shut down by FDIC( Federal Deposit Insurance Company ), the reason being that the bank was under capitalized. A letter written by Sentor Schumer  saying the bank posed significant risks to taxpayers and borrowers got leaked and the result was that the IndyMac Customers withdrew $1.3 Billion from the bank after the leaked letter. The bank stock kept decreasing from $50 in 2006 to $.28 today. IndyMac is the second largest bank to be shut down.

For the time being the customers will still have access to their money with the new name - IndyMac Federal Bank. Also the bank will be having new management from FDIC. FDIC will be running the bank until they find a big acquirer.

Uninsured depositors will be contacted by the FDIC to meet with their claims people. The FDIC typically insures bank deposits up to $100,000.

The FDIC has established a toll-free number for customers of IndyMac Federal Bank, FSB. The toll-free number is 1-866-806-5919 and will operate today from 3 p.m. to 9 p.m. (PDT), and then daily from 8 a.m. to 8 p.m. thereafter, except Sunday, July 13, when the hours will be 8 a.m. to 6 p.m.

For more information visit the FDIC website: http://www.fdic.gov/bank/individual/failed/IndyMac.html

This is a great warning to other banks throughout the world to stay abreast of the condition and see that they dont go the IndyMac way.