Feds have seized, closed, and frozen all of its assets. Depositors will have access to ATMs ONLY.
via Bloomberg

July 11 (Bloomberg) — IndyMac Bancorp Inc. became the second-biggest federally insured financial company to fail today after a run by depositors left the California mortgage lender short on cash.

The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank, starting next week, the Office of Thrift Supervision said in an e-mail today. Customers will have access to funds this weekend via automated teller machines.  Read more 

Imagine a 40% crash in housing prices . Seriously just run through the scenario in your head. How much of your net worth is accounted for in your house? How much of your retirement nest egg? How much have you drawn out of said house in equity? What would that wonderfully extended mortgage look like, you know the adjustable one with the interest only for the first five years or so; the mortgage that will last you a good fifty years – yeah that one. You in the service industry, the paper pusher who is about to be down sized, the data entry operator or phone jockey making more than you know you should – you. How would you like to be holding a mortgage on a property that is worth about half what you paid for it, making half of what you used to? Get the picture? I’ll buy it off you for transaction cost.  Read more