It's official: IndyMac in Receivership

Here is confirmation and more details from the LATimes and CNNMoney. Some interesting details from the CNN article:

According to the FDIC, IndyMac's failure will result in up to $500 million in lost deposits out of $1 billion in uninsured deposits held by 10,000 customers. The agency says the failure will cost the Deposit Insurance Fund between $4 billion and $8 billion, based on preliminary estimates.

"It's possible this will be the most costly bank failure in history, but it's too soon to say," FDIC Chairman Sheila Bair said in a conference call late Friday night. The failure "could also affect premiums paid by all banks for deposit insurance," she added.

I would love to see how the FDIC would pay out much more than $5 billion. They could start selling Treasuries, but this is the absolute worst time for that, given the soaring funding needs of the Federal government, and the sensitivity of interest rates.

They are going to try to sell IndyMac for 90 days. I can't envision any buyers enthusiastic or able to take on the business "whole", including all future liabilities.