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US lender IndyMac Bank was forced to close over the weekend, which has recast fears that the worst of the credit crunch is still yet to come.
The collapse of IndyMac, which had total assets of more than $32 billion, is the second largest failure of a financial institution in US history.
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The bank will reopen today as IndyMac Federal Bank; the Federal Deposit Insurance Corporation (FDIC) will be in control of the institution.
The FDIC will maintain banking services with view to maximise the value of the institution and secure a future sale.
Meanwhile, shares of government-sponsored Freddie Mac and Fannie Mae have swung wildly as fears mount that the institutions may potentially collapse.
Any collapse would seriously damage the American economy since they account for more than half of all US home loans.
Published: 14-07-08
