Meanwhile, FDIC (run by yet another incompetent Bush appointee) is going to need a bigger bailout.

[girl gone mad]

When the federal government seized IndyMac in July, it estimated the failure would cost the FDIC's insurance fund somewhere between $4 billion and $8 billion. Yesterday the FDIC said the cost will be even worse than its previous worst-case-scenario estimate: $8.9 billion.

That's pretty significant -- banks and thrifts are regulated, they are not supposed to be mysterious; and now we learn the IndyMac failure will be even more expensive than the government's most pessimistic estimate, which was made just six weeks ago.

http://latimesblogs.latimes.com/laland/2008/08/cost-of-indymac.html?ref=patrick.net

And let's not forget about all of the insolvent banks the FDIC has so far refused to shut down..