IndyMac Bancorp files for Chapter 7 bankruptcy

August 1, 2008 by · Leave a Comment
Filed under: Industry News 

Another chapter is the IndyMac saga.  According to Reuters, IndyMac Bancorp filed for Chapter 7 bankruptcy protection in court.  Here is the release:

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.

The Pasadena, California-based company filed for Chapter 7 protection on Thursday with the U.S. bankruptcy court in Los Angeles, indicating it plans to liquidate. IndyMac expects the court to appoint a bankruptcy trustee promptly.

The filing was widely expected. It does not include IndyMac Federal Bank FSB, which is run by the Federal Deposit Insurance Corp and is the successor to IndyMac’s former banking unit.

Most deposits at IndyMac Federal are insured up to $100,000. 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.

Chief Executive Michael Perry, the company’s sole remaining employee, in a court filing said he didn’t have information normally required to file for bankruptcy protection because the FDIC has sole possession of IndyMac’s books and records.

Perry has no involvement in IndyMac Federal’s operations.

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.

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