Okay, so that the tittle of this post does not take into account inflation. Still, Indy Mac was not as small as most banks that have failed recently.

From Sacramento Real Estate Statistics (a blog)….

Indymac Bank officially failed a few minutes ago. The FDIC has taken it over, and will begin liquidating assets on Monday. The failure will cost the FDIC trust fund between $4 and $8 Billion. Sadly, it looks like many depositors will lose a lot of money as well.

I don’t believe that the FDIC will only lose between $4 and $8 billion on this deal. More like 10 to 16 billion. For one thing, I think they are going to keep Indymac a float for to long in hopes of finding a buyer.

Naked Capitalism has a good overview of how this will affect FDIC.

More details from Credit Bubble Stocks.