Indymac Bank
Date:
July 11, 2008
Economic Target:
Housing
Maximum Amount:
$19.06 billion
Amount Spent:
$10.70 billion
Deficit Impact:
$10.70 billion The Office of Thrift Supervision closed IndyMac Bank and named the FDIC conservator. IndyMac had total assets equal to $32.01 billion and total deposits of $19.06 billion. The FDIC has insured all individual deposits up to $250,000. As conservator the FDIC established IndyMac Federal Bank as the successor to IndyMac Bank and transferred all insured deposits to the new bank. This bank closing was the second largest of 2008.
On 3/19/2009 the FDIC completed the sale of IndyMac Federal Bank to OneWest Bank. OneWest acquired all deposits and $20.7 billion in assets from IndyMac Federal at a discounted $4.7 billion. All 33 branches of IndyMac Federal reopened on 3/20/2009 as OneWest. The FDIC sustained losses of $2.6 billion from IndyMac Federal in the fourth quarter of 2008 due to the deterioration of the real estate market.
Notes:
Although FDIC costs are counted on-budget, they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount indicates value of total bank deposits. Amount spent and deficit impact represent the total FDIC-estimated cost to deposit insurance fund as of 3/19/2009 when IndyMac Federal was sold.