IndyMac Bancorp Inc.

IndyMac Bancorp finally imploded as the tsunami of defaulting alt-A “Liar Loans” crushed its balance sheet. Unfortunately, today’s crashing home prices and the current credit crisis are just the beginning of the storm. IndyMac is little more than a cardboard cut-out of Northern Rock, Countrywide and so many others who greedily grabbed the low hanging mortgage lending fruit. Everybody else is now starving into conservatorship:

In what federal regulators are calling the second-largest U.S. bank failure in history, mortgage lender IndyMac Bancorp, Inc.’s IndyMac Bancorp Inc. operations have been taken over by the Federal Deposit Insurance Corp. (FDIC), the regulator that oversees the retail bank. The Office of Thrift Supervision (OTS) said it shut down IndyMac on Friday and that a successor institution, IndyMac Federal Bank, will be opened on Monday.

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