The Office of Swift Supervision has “seized” assets of lender IndyMac, and the FDIC has taken over operations according to this article.

According to the Drudge Report, this is the second largest bank failure in U.S. history.

The company that fired 3,800 employees and exited the mortgage game yesterday has announced that it will be selling most of its branches to competitor Prospect Mortgage. IndyMac’s shares were down another 38% today to close at $0.44.

What happens when a mortgage lender stops making mortgage loans? Well for IndyMac, the next step is to layoff 3,800 employees. Just for fun, here’s a quote from IndyMac CEO Michael Perry:

“[W]e have been working closely with our federal banking regulators with respect to the actions that they and we must take to meet our mutual goal of keeping IndyMac safe and sound through this crisis period.”

Safe and sound? I think you’ve already blown that one, brain surgeon.