You are not the only one, if you are recoiled by the name of IndyMac. In the summer of 2008 after the failure of several banks, a rumor busted that IndyMac Bank was in hot waters. Consequently, the IndyMac Bank customers became more cautious about the providence of their funds.

When they started to gather outside the bank in a distressed endeavor to get their money back, the other people also came to know about this. They also started to worry about what would happen, if their own bank failed.

If you have knowledge about the operations of a bank, you must be well aware when you diverge over your paycheck, the sum does not just congregate dust in a vault waiting for you to come back and get it.

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Total number of failed U.S. banks has reached 52 during the year 2009 as seven more banks have been shut down by the bank regulators, this Thursday.

During the 2008-2009 banking crisis this was the largest number of bank failures in one week, it has exceeded the previous record which was five bank failures in a week and that record has been set just last week.

The Street .com’s recent list of 89 undercapitalized banks and thrifts had included all of the seven failed banks. All the five banks that failed last week were also included in that list.

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As credit crisis deepens, the pressure on regulators to safe guard depositor’s interest mounts further. In a recent move Four more banks have been closed by regulators, one each in states of Georgia, Michigan, Idaho and California. Total number of bank failures is now around 30.  Nearly $700 million USD will be paid from Deposit insurance fund by Federal Deposit Insurance Corp to protect depositors.

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