Close the Doors!

IndyMac bank has been shut down by regulators.

SAN FRANCISCO (MarketWatch) -- IndyMac Bancorp said late Monday that regulators have told the lender it isn't "well capitalized" after failing to raise new capital.

The company said it has agreed to a new business plan with regulators which includes halting new mortgages to shrink its balance sheet and
improve capital ratios. It will also cut 3,800 jobs, bringing staff levels to
roughly 3,400.

IndyMac is also barred from accepting new brokered deposits unless it gets a waiver from the Federal Deposit Insurance Corp., a bank regulator that insures deposits. But the company said it's not certain a waiver will be granted. Second-quarter losses may be larger than the first-quarter, the company also warned.

Translation: IndyMac bank is done. Charred to a crisp. Time to take this subprime turkey out of the oven. This article should be entitled "Regulators Order IndyMac to Close." But people aren't stupid. There might be a bank run anyway. On it's annual report through March 31, 2008, IndyMac listed $17.8 billion in deposits. How much will the FDIC have to cover?