IndyMac

About IndyMac

IndyMac Bank failed on July 11, 2008, the fourth largest bank failure in US history at the time. IndyMac specialized in Alt-A mortgages, which required less documentation than prime loans but were better than subprime. The bank had 32 billion in assets. A bank run in late June drained 1.5 billion in deposits over 11 days. The FDIC estimated the failure would cost 8.9 billion. Senator Charles Schumer published a letter expressing concern about IndyMac, which the bank blamed for triggering the run. The FDIC created IndyMac Federal Bank to continue operations. OneUnited Bank acquired some deposits. The IndyMac failure demonstrated that bank runs could still happen in the modern era and raised questions about the adequacy of FDIC insurance limits.