This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IndyMac Bancorp to Liquidate

IndyMac Bancorp filed for Chapter 7 bankruptcy protection Friday in Los Angeles and will be liquidated to pay off its creditors.

The Pasadena, Calif.-based thrift became the largest bank failure in the history of the Federal Deposit Insurance Corporation last month. In the best-case scenario, IndyMac will be able to pay back lenders in full, but in the worst case, only about one-tenth of its debt will be reimbursed, according to a filing posted to the Web site of the federal bankruptcy court for central California.

The document, signed by CEO Michael Perry and an attorney, estimated that IndyMac has between $50 million and $100 million in assets, but $100 million to $500 million in liabilities. IndyMac Bancorp has fewer than 50 creditors, though the filing only relates to those who lent to the holding company, and not its retail bank customers.

IndyMac Bank is now operated by the federal government and is no longer connected to the holding company, IndyMac Bancorp. At the time of its government takeover on July 11, the FDIC said IndyMac Bank had as much as $1 billion in uninsured deposits held by approximately 10,000 depositors. Those unlucky patrons were set to meet with FDIC claims agents last month, but only promised an advance payment worth 50% of their uninsured funds.

The FDIC estimated its total IndyMac-related payout would be between $4 billion and $8 billion.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs