IndyMac Bancorp Inc. has filed for Chapter 7 bankruptcy protection and intends to liquidate, according to a Reuters report. The court is expected to appoint a bankruptcy trustee shortly.
This bankruptcy filing does not affect the status of depositors in IndyMac Federal Bank FSB, the successor to IndyMac's former banking unit following its Federal Deposit Insurance Corp. (FDIC) takeover.
‘Holding companies often go bankrupt once banking units get taken over because most assets and operations are at the bank level,’ Ralph ‘Chip’ MacDonald, a partner at Jones Day, told Reuters. ‘They often file to reorganize, but there was probably no viable plan here.’
In a court filing, Michael Perry, IndyMac's chief executive and sole remaining employee, stated that he did not have the information typically required to file for bankruptcy protection because the FDIC has sole possession of IndyMac's books and records.
Source: Reuters