Banks failed by FDIC

IndyMac is shut by FDIC because it failed to insure 95% of $19 billion under their management. According to FDIC rule, all deposit must be insured under events causing customer loss. IndyMac is in liquidity problem so that its asset can't cover liability. FDIC only insure $100K for deposit and $200K for investment account. The part not insured by FDIC will be loss to their customers. There are about 100,000 IndyMac customers could loss half of the un-insured deposit, that is $500 million. FDIC must pay between $4 billion and $8 billion to this loss.

FDIC shut down IndyMac and tries to find a buyer. This is the third bank FDIC shut down. IndyMac accounts can still be accessible on ATM but not online and phone. These services will be reopen on Monday.