NEW YORK — The FBI has added the insolvent IndyMac Bancorp Inc. to its list of financial corporations worth investigating, the Associated Press is reporting. The bank is under investigation for possible fraud in connection with home loans made to risky borrowers.
A law enforcement official told the AP earlier today that the investigation is focused on the company, which was taken over last Friday by the FDIC, and not individuals who ran it. IndyMac closed up shop after succumbing to pressures of tighter credit, tumbling home prices and rising foreclosures. The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.
This week, hundreds of IndyMac customers lined up outside of the bank's headquarters and branches in the Los Angeles area, demanding to withdraw money or get answers about the fate of their deposits.
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