IndyMac Fraud Investigation

July 16, 2008: The Associated Press reported that the FBI is investigating possible fraud involving loans made by California-based bank IndyMac.¹ News of the probe broke just days after the Federal Deposit Insurance Corporation (FDIC) seized control of the mortgage lender in one of the largest banking failures in U.S. history.²

Fast Facts

1. July 16, 2008: Associated Press reports IndyMac under investigation¹
2. Probe involves home loans made to high-risk borrowers¹
3. Investigation said to center primarily on the company, not individual bank owners³
4. IndyMac taken over by the FDIC on July 11, 2008
5. As of July 16, 2008, it was unclear how long the investigation had been going on¹
6. FBI had no immediate comment about the probe³
7. FDIC running IndyMac under the name IndyMac Federal Bank²

IndyMac Bank Failure

On July 11, 2008, federal regulators seized control of mortgage lender IndyMac and the FDIC was put in control of the company's operations. IndyMac's collapse has been called the second largest bank failure in U.S. history.⁴ In the days that followed, hundreds of IndyMac customers lined up outside branches in California to withdraw their money from the failed bank.⁵

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