IndyMac Bank (NYSE:IMB) was taken over by the FDIC today as it went under for being under-capitalized. The banks stock which went from $50 down back in 2006 ended at $.28 today. IndyMac is the largest thrift ever to go under in the United States, and the second largest bank to go under.

The FDIC will probably take a huge hit on it and then flip the bank out to an acquirer. Until they find a buyer though, the FDIC is running the show.

The failure comes after their June 30th announcement in which IndyMac said it was ceasing all commercial lending activity.

It is likely that this won’t be the last failure as market conditions continue to deteriorate in many markets. There is over $1T worth of ARM mortgages that will be coming due over the next year or so, and as those loans also turn into junk, more banks will feel the pressure to raise capital to prevent a fold-up.