Regulators seize troubled IndyMac

Feds take over mortgage lender IndyMac. FDIC will seek buyer. May become most expensive bank collapse ever.

By Catherine Clifford and Chris Isidore, CNNMoney.com writers
Last Updated: July 11, 2008: 11:03 PM EDT

NEW YORK (CNNMoney.com) -- In what could turn out to be the most expensive bank failure ever, troubled mortgage lender IndyMac Bank was taken over by federal regulators on Friday.

The operations of the Pasadena, Calif.-based bank - once one of the nation's largest home lenders - were shut down at 3 p.m. by the Office of Thrift Supervision and transferred to the Federal Deposit Insurance Corp.