IndyMac Bank Failure

Nervous investors withdrawing money from the California-based IndyMac bank forced the FDIC to seize control of the institution on July 11, 2008.Reuters: U.S. seizes IndyMac as troubles spread (July 12, 2008) The FDIC sold IndyMac to a group of private investors for $13.9 billion, according to an official statement released on January 2, 2009.CNNMoney.com: FDIC sells IndyMac to private investors for $13.9B (January 2, 2009)

A former official at the U.S. Department of the Treasury, Darrel Dochow, is being investigated for fraud after being accused of allowing the bank to file reports that hid how financially troubled the institution was before it failed in July 2008.ABC News: Scandal at Treasury: Official Quits Amidst Fraud Scandal (March 5, 2009)

Schumer Letter

A major mortgage holder caught in the real estate bust that began in 2007, IndyMac's decline may have been hastened by the publication of a letter written by New York Senator Charles Schumer on June 26 expressing concern over the bank's stability.Los Angeles Times: IndyMac Bank seized by federal regulators (July 12, 2008)

Schumer's letter, addressed to federal regulators, warned that the ailing bank could fail if faced with a wave of withdrawals by account-holders.OC Register: Sen. Schumer raises concerns over IndyMac’s solvency (June 27, 2008) IndyMac officials blamed the letter for causing the very situation it had predicted. Between June 27 and July 10, cautious IndyMac customers withdraw a total $1.3 billion.Los Angeles Times: IndyMac Bank seized by federal regulators (July 12, 2008)

Sold to Private Investors

The FCIC announced on January 2, 2009, that they had sold IndyMac to a group of private investment firms which were operating under a thrift holding company operated by IMB Management Holdings. The investors included J.C. Flowers & Co., Paulson & Co. and the private investment firm which manages entrepreneur Michael Dell's fortune. The transaction is projected to close in late January or early February.CNNMoney.com: FDIC sells IndyMac to private investors for $13.9B (January 2, 2009)

Darrel Dochow

Darrel Dochow retired from his position at the Office of Thrift Supervision at the Treasury Department in February 2009. He is under investigation for allegedly allowing IndyMac to file reports that hid how financially troubled the bank was before it failed in July 2008. For example, Dochow allegedly allowed IndyMac to register an $18 million capital injection it received in May 2008 so it appeared that the bank had the money in the end of March.ABC News: Scandal at Treasury: Official Quits Amidst Fraud Scandal (March 5, 2009)