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Federal government takes control of IndyMac Bank

The federal government took control of California-based IndyMac Bank on Friday, in what regulators called the second-largest bank failure and the largest regulated thrift failure in U.S. history.

IndyMac Bank's assets were seized by federal regulators after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.

The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corp. because it did not think the lender could meet its depositors' demands.

IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.

Other bank services, such as online banking and phone banking were scheduled to be made available Monday.

IndyMac had $32.01 billion in assets as of March 31.

A spokesman for the lender did not immediately return an e-mail request for comment.

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