Marginal Revolutions

IndyMac bank was a bank that was seized b the FDIC in 2008. The companys full name is Independent National Mortgage Corporation. IndyMac at one point in time was the largest savings and loan association in Los Angeles, California and the seventh largest mortgage broker in the United States. This banks failure is the fourth largest bank failure in the United States. IndyMacs parent company IndyMac Bancorp has filed for Chapter 7 bankruptcy.

IndyMac bank was founded in 1985 as Countrywide Mortgage Investment. IndyMac unlike some other companies is a private corporation with no relationship to the government. IndyMac acquired several different companies during its reign. Some of these companies are, SGV Bancorp, Financial Freedom, Barrington Capital Corporation, and New York Mortgage Company.

IndyMacs reign was discovered to be full of different controversies and problems. IndyMac was caught backdating a $18 million dollar contribution from its parent company. The reason behind this was to preserve the banks appearance as a well capitalized institution. There were also several foreclosure controversies. When IndyMac had its rebirth as OneWest Bank the company the company decided to take a more aggressive approach to foreclosing on properties. In 2009 a judge punished OneWest for their harsh actions. In 2009 OneWest bank worked with the sheriffs department to change the locks despite agreeing to work with the owners eight days prior to changing the locks. One West has been so aggressive that it has forced some judges across the country to issue a restraining order against the company. Another issue for OneWest bank was in 2008 a company called Center for Responsible Lending opened up a report that showed lawsuits filed by customers and former employees. Before the collapse, IndyMac denied the report. A month later a US official released that the FBI is investigating IndyMac for fraud. It has not been revealed whether or not this was before or after the takeover from the FDIC.