NEW YORK, Aug. 1, 2008 (Reuters) — IndyMac Bancorp Inc , once one of the largest U.S. mortgage lenders, has filed for bankruptcy protection, less than three weeks after being seized by federal regulators following a bank run by depositors. IndyMac was the ninth-largest U.S. mortgage lender in 2007, according to the newsletter Inside Mortgage Finance. It collapsed after defaults mounted, and as tight capital markets caused losses on mortgages it couldn't sell. The seizure came after panicked customers withdrew more than $1.3 billion of deposits over 11 business days.
The filing, which was widely expected, does not affect the status of depositors in IndyMac Federal Bank FSB, the successor to IndyMac's former banking unit after it was taken over by the Federal Deposit Insurance Corp last month. Most deposits at IndyMac Federal Bank are insured up to $100,000. The bank also holds the former bank's mortgages and other loans on its balance sheet, an IndyMac federal spokesman said. The FDIC is trying to sell IndyMac's assets.
IndyMac Bancorp, the holding company, has between $50 million and $100 million of assets, between $100 million and $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 since the 1980s savings-and-loan crisis. Regulators 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 U.S. banking failures this year. The FDIC said IndyMac's failure will cost the regulator's $52.8 billion insurance fund about $4 billion to $8 billion.
RBC Capital Markets analyst Gerard Cassidy has said there could be 300 U.S. banking failures in the next three years.
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