IndyMac Bancorp files for bankruptcy after seizure

The L.A. Times reports:

IndyMac Bancorp, the parent of the giant mortgage lender that was taken over by the federal government last month, has filed for bankruptcy protection while it liquidates its remaining assets.

In a Chapter 7 petition filed Thursday in U.S. Bankruptcy Court in Los Angeles, IndyMac Bancorp listed assets of $50 million to $100 million and liabilities of $100 million to $500 million.


IndyMac said it has fewer than 50 creditors, including professional firms and other banks. It didn't include amounts of their claims.

Regulators seized IndyMac Bank, the operating subsidiary, on July 11. The bank, a specialist in home loans to borrowers who didn't document their incomes, racked up huge losses when defaults rose and mortgage investors would no longer buy its loans.

The U.S. Office of Thrift Supervision shut down IndyMac Bank after customers spooked by reports of the bank's shaky condition withdrew $1.3 billion. The bank reopened under the control of the Federal Deposit Insurance Corp., which has been trying to find a buyer for it.

The bankruptcy of the parent company will have no effect on the operation of what is now called IndyMac Federal Bank, bank officials said.