IndyMac: The Making of a Panic
IndyMac Bank, which buckled in July under the weight of the mortgage crisis, revived memories of the savings and loan debacle of the 1980s. Customers stood in line for days hoping they could get back whatever they had entrusted to Indymac.
IndyMac stock dips below $1 for the first time (from a high of $50 in 2006) and Sen. Charles Schumer releases letter to regulators warning IndyMac "could face a failure if prescriptive measures are not taken quickly."
Reports surface saying IndyMac blames Schumer for $100 million in withdrawals over previous weekend. Bank spokesman is quoted saying, "We're working the problem from many angles. That's all I can say."
June 27-July 7
Word of Schumer’s letter spreads and IndyMac customers withdraw $730.2 million
IndyMac's stock sinks to 44 cents, down 99 percent from a year earlier. The bank sells off retail mortgage branches. Schumer calls IndyMac "a junior version of Countrywide."
IndyMac announces it's laying off 3,800 people 53 percent of its workforce.
Friday, July 11
IndyMac closes Pasadena headquarters at 3 p.m. and tapes notice of FDIC takeover inside door.
Federal regulators take over IndyMac, as it becomes clear the bank may not have enough funds to cover customer withdrawals.
Sunday, July 13
FDIC chair says customers with uninsured funds may be able to recoup money from sale of IndyMac’s assets
Schumer says he’s not to blame for IndyMac’s collapse.
New IndyMac CEO goes on television blitz to reassure Americans that IndyMac is an anomaly
Saturday, July 12
IndyMac online services are disabled.
Monday, July 14
IndyMac reopens under control of FDIC
Customers flood bank’s 33 California locations to withdraw deposits
Hundreds line up at dawn at Pasadena headquarters. Tents are set up outside to shade customers in line. At least one woman passes out from the heat.
FDIC tells customers with uninsured deposits they’ll get half the uninsured amount right away
Tuesday, July 15
Customers begin lining up at IndyMac Encino location at 1:30 a.m., but when branch opens, only five customers are allowed inside at a time.
Police arrive and tell angry IndyMac customers to calm down or face arrest. Three police cars arrive on the scene, while other officers monitor lines at branches throughout Southern California.
Wednesday, July 16
Reports surface that IndyMac is under FBI investigation for fraud. (Both the bank and the FDIC have refused to comment.)
Photo by GABRIEL BOUYS/AFP/Getty Images