According to The New York Times and others,IndyMac Bancorp, the third-largest banking failure in United States
history, said that it had filed for bankruptcy protection, less
than three weeks after being seized by federal regulators following a
bank run by depositors.
Based in Pasadena, Calif., the holding company for IndyMac Bank filed for Chapter 7 protection on Thursday with the federal bankruptcy court in Los Angeles, indicating it plans to liquidate. IndyMac said it expected the court will appoint a bankruptcy trustee promptly.
IndyMac Bancorp has $50 million to $100 million of assets, $100 million to $500 million of liabilities, and fewer than 50 creditors, according to the bankruptcy filing.
The collapse of IndyMac was the largest U.S. banking failure in two decades. Regulators at the time said IndyMac ended March with about $32 billion of assets, and about $19 billion of deposits, most of which were insured.
IndyMac was the fifth of seven bank failures this year, the F.D.I.C. said.
IndyMac once specialized in "Alt-A" and other below-prime home loans, which often did not require borrowers to fully document income or assets.
It collapsed as borrower defaults began to mount, while tight capital markets forced it to take losses on mortgages it sold and kept on its books.
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