Filed under: Bear Stearns, Big Banks, central bank, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, FDIC, Great Depression, Greenback, indymac, Inflation, liquidation, nationalization, Stock Market, US Economy, Wall Street | Tags: Federal Deposit Insurance Corp., Federal Deposit Insurance Corporation, IndyMac Federal Bank, run on banks
The Second Largest Bank Failure in U.S. History
IndyMac Bank seized by federal regulators
AFP
July 11, 2008
The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.
Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: “Please, please, I want to take out a portion.” All she could do was read a two-page notice taped to the door.
The bank’s 33 branches will be closed over the weekend, but the Federal Deposit Insurance Corp. will reopen the bank on Monday as IndyMac Federal Bank, said the Office of Thrift Supervision in Washington. Customers will not be able to bank by phone or Internet over the weekend, regulators said, but can continue to use ATMs, debit cards and checks. Normal branch hours, online banking and phone banking services are to resume Monday.
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