Fed Insurance Funds Could Reach $8B in IndyMac Failure
The federal insurance fund set up to protect money deposited at failed banks will have to shell out up to $8 billion to depositors of shuttered IndyMac BancorpIMB.
The Federal Deposit Insurance Corp. estimated its insurance fund would have to pay out between $4 billion and $8 billion to cover some $18 billion in insured deposits at IndyMac Bank, which the Office of Thrift Supervision closed down on Friday after a run on the bank left it illiquid and its stock in ruins.
IndyMac is not likely to be the last bank to go under amid the current crisis. BankUnitedBKUNA and Downey FinancialDSL are both on very thin ice, and while it is not in immediate danger, Washington MutualWM, which raised $7 billion from a group of investors led by private equity firm TPG during the second quarter, will be watched very closely when it reports results on July 22.
Published on July 15, 2008
Are you a retail Agent Looking for a Quote?