IndyMac halts lending, will cut half its workforce

Regulators say IndyMac short of capital

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IndyMac Bancorp Inc. announced Monday that it’s no longer considered "well capitalized" by regulators, has stopped accepting new loan submissions or rate locks, and will lay off 3,800 employees — about half of its workforce.

IndyMac Chairman and CEO Michael W. Perry promised the company will honor all existing rate-locked loans and will continue to fund the loans in coming weeks.