IndyMac, run by FDIC, lays off 110 more workers

Times Staff Writer

IndyMac Federal Bank handed out 110 pink slips Thursday, but the cuts were less severe than the Pasadena savings and loan had predicted before it was seized three weeks ago by federal regulators.

The fired employees were “in departments scattered throughout the company,” IndyMac President Rick Hoffman said in a memo to employees.

The departures leave IndyMac with about 3,700 employees, he said, from a peak of more than 10,000.

IndyMac, which specialized in “stated income” mortgages for borrowers who didn’t document their earnings, recorded huge losses after delinquencies soared on the nontraditional loans and buyers for them disappeared.


Federal regulators seized the S&L; on July 11, and the Federal Deposit Insurance Corp. is running it while seeking a buyer.