"The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history."
Yep, "defaulted mortgages" cited as the prime cause.
T-Men also are standing by this weekend to take over Fannie Mae and Freddie Mac, which together hold almost half of the nation's mortgage debt.
IndyMac is the fifth FDIC-insured failure of the year. No one expects it to be the last.
Sen. Chuck Schumer (D-N.Y.) blamed (in part) Bush administration regulators for allowing IndyMac to run out of control; Bushies and IndyMac executives blamed Schumer for prompting a run on the bank. It's always nice to have someone else to blame.