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 Bancorp(IMB Quote).
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. BankUnited(BKUNA Quote) and Downey Financial(DSL Quote) are both on very thin ice, as TheStreet.com pointed out last week, and while it is not in immediate danger, Washington Mutual(WM Quote), 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.
Unwinding IndyMac
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