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Regulators closed IndyMac after customers began a run on the lender following the June 26, 2008, release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse. In the 11 days that followed the letter's release, depositors took out more than $1.3
billion, regulators said.
In a statement Friday, July 11, 2008, Schumer said IndyMac's failure was due to
long-standing practices by the bank, not recent events.
The financial institution spent the last two weeks trying to
reassure customers that it was not near default, including
announcing that it had stopped accepting new loan submissions and
planned to slash 3,800 jobs, or more than half of its work force.
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