July 11, 2008

IndyMac Bank seized by federal regulators

IndyMac
Annie Wells / Los Angeles Times
IndyMac Bank customers in Pasadena encounter notices that the FDIC has closed the bank.
The Pasadena-based thrift's failure is the second biggest ever by a U.S. bank. Doors will reopen Monday.

The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.

Citing a massive run on deposits at the $32-billion bank, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: "Please, please, I want to take out a portion." All she could do was read a two-page notice taped to the door.
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There should be no doubt in peoples minds that were are in a depression now. Banks closing due to "runs". History is repeating itself because we have learned nothing from it. The MTVs, NFLs, and "blockbuster movies", have lulled us to sleep, and we need to wake up quick and in a hurry if we are going to save our Republic.

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