Faltering IndyMac Shut Down, Taken Over By Regulators

July 11, 2008 7:35 p.m. EST

Washington, DC (AHN) - Battered mortgage lender IndyMac Bancorp was taken over Friday by the Federal Deposit Insurance Corp. It's the second largest closing of a financial institution in U.S. history.

IndyMac Bank had total assets of $33.01 billion with deposits of $19.06 billion as of March 31.

The bank's failure will cost the FDIC insurance fund between $4 billion and $8 billion, according to the regulator. The FDIC plans to operate IndyMac until it can arrange a sale of the company.

IndyMac bank, based in California, was the nation's largest publicly traded mortgage lender.

The government-run bank will be open for business on Monday as IndyMac Federal Bank.