Lessons Learned from Indymac
By V. Gerard Comizio, Lawrence D. Kaplan and Kevin L. Petrasic
On July 11, 2008, the Office of Thrift Supervision closed the $32 billion Indymac Bank, FSB, and appointed the Federal Deposit Insurance Corporation as receiver in the third largest bank failure in United States history. Various aspects of the failure of Indymac will be examined closely over the next few months as bank regulators and the banking industry brace for many more banks to fail over the next year. In the near term, the failure of Indymac and continued volatility among other banks provides immediate lessons to participants in the financial services industry.