We've been suggesting that a string of bank failures may be around the corner. The federal takeover of Pasadena-based IndyMac--the second largest bank failure ever--serves as a timely reminder. After devastating Wall Street, the credit crunch is starting to hit Main Street in a big way. IndyMac was felled by a massive run: customers were pulling out $100 million a day, the LA Times notes. The stock had fallen to about $1. This could easily happen to other struggling regional-type banks. Rumors can really kill, as we all know, especially when stoked by powerful politicians. Sen. Charles E. Schumer (D-NY) told regulators last month that IndyMac was in trouble. IndyMac's forte was Alt-A loans, not subprime loans. In some ways, its demise is even more ominous.   

For more:
- here's the LA Times article 
- IndyMac rejected a deal that could have saved it. Article

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