FDIC doesn't see another IndyMac-size failure

By Alexandria Sage

SAN FRANCISCO (Reuters) - The Federal Deposit Insurance Corp does not expect to take over another failed bank similar in size to IndyMac Bancorp Inc or larger, FDIC Chairman Sheila Bair told Reuters on Tuesday.

"Based on the supervisory data and financial data I have, I would be very surprised if we had failures of that size institution or larger," Bair said in an interview before delivering a speech about consumer protection.

"Based on what I'm seeing now, I really don't see we will have institutions of that significant size having serious problems," she said.

Earlier this month the FDIC seized IndyMac, the ninth-largest U.S. mortgage lender in 2007. The FDIC is running IndyMac while looking to sell its assets.

Before its demise, IndyMac was on the FDIC's list of problem banks at the end of the second quarter. There were 90 institutions on the list at the end of the first quarter, and the FDIC is expected to update the list in August.

Bair and other regulators have been saying that they expect an uptick in the number of bank failures, but mostly among smaller institutions.

The FDIC oversees a federal fund of about $53 billion that will be tapped to save IndyMac depositors and other future bank failures. The federal agency insures up to $100,000 per deposit and $250,000 per individual retirement account.

Bair, who has said she remains comfortable with the amount in the fund, said the FDIC board will meet in September to determine how to replenish it, which must be done within the next five years according to federal banking laws.