NEW YORK (Reuters) - Mortgage lender IndyMac Bancorp Inc was taken over by the Federal Deposit Insurance Corp on Friday, becoming the second-largest financial institution to be closed in U.S. history. Banks are not able to file for bankruptcy protection as other corporations may choose to do if they became insolvent. Rather, the FDIC has special powers to oversee the liquidation of assets from failed banks and thrifts and/or search for a buyer for that bank. Congress first gave the FDIC receivership power in the 1930s, after thousands of bank failures in the Great Depression highlighted the difficulty in efficiently liquidating the assets of a failed bank and returning deposits to customers. The following explains how the receivership process works today: More
Sphere: Related Content
-
Categories
-
Archives
July 11th, 2008 at 8:53 pm
[…] Fast Loans - Personal Unsecured wrote an interesting post today onHere’s a quick excerptNEW YORK (Reuters) - Mortgage lender IndyMac Bancorp Inc was taken over by the Federal Deposit Insurance Corp on Friday, becoming the second-largest financial institution to be closed in U.S…. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] […]