Following a seizure by the Federal Office of Thrift Supervision, control of IndyMac was transferred to the FDIC and the California bank has been renamed IndyMac Federal Bank. The confiscation of the bank came on the heels of a two-week period where customers withdrew more than $1.3 billion.

John Bovenzi, who was placed in charge of IndyMac said, “Our objective is to preserve the bank’s value and return it to the private sector, which we plan to do in the upcoming months.” Though many IndyMac accounts are guaranteed, stockholders will likely be “wiped out” according to Bovenzi, IndyMac’s new CEO.

The bank has 265,000 customers with insured accounts that will be guaranteed by the Federal Deposit Insurance Corp. and Bovenzi insists their insured money is safe. Those with deposits exceeding the insured limits are covered for those amounts and will have immediate access to 50% of their uninsured balances.

Bovenzi said stockholders will likely be “wiped out” once the bank’s assets are sold. IndyMac shares already were down to 28 cents on Friday, and shareholders won’t receive the proceeds from the bank’s eventual sale, he said.

IndyMac grew rapidly during the recent real estate boom years, specializing in “Alt-A” loans that required little or no evidence of income or assets from borrowers. But it suffered losses when the market for mortgage-backed securities dried up.