Another one bites the dust

FDIC seizes IndyMac Bank (IMB).

Good riddance to bad rubbish. Another bad lender that made ridiculous loans on overpriced homes to people who had no chance of paying them back. There's plenty of blame to go around: the Fed, Congress, the FHA, the GSEs, etc. Most of those institutions will never get what they deserve. So it's a small victory to see the scumbag bad banks get wiped out.

And holy crap! Some dumbasses had a lot of money in IMB way over the FDIC insurance limit:

At the time of closing, IndyMac Bank, F.S.B. had about $1 billion of potentially uninsured deposits held by approximately 10,000 depositors. The FDIC will begin contacting customers with uninsured deposits to arrange an appointment with an FDIC claims agent by Monday. Customers can contact the FDIC for an appointment using the toll-free number above. The FDIC will pay uninsured depositors an advance dividend equal to 50 percent of the uninsured amount.

How stupid can you be? It's bad enough to have any money in a bank over the FDIC limit, but in a bank whose stock is trading for pennies? And when a U.S. Senator has publicly stated that the bank is in trouble? That's financial Darwinism.

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