IndyMac Bancorp is shaping up to either be the next bank failure or the next government bailout recipient. IndyMac experienced a “mini run on the bank” over the weekend when about $100 million of its $19 billion in deposits were withdrawn by nervous depositors.

Grove Nichols, IndyMac’s director of communications, acknowledged that the withdrawals continued Monday saying, “we had continued elevated traffic in the branches today, but by afternoon it was subsiding.” Grioves added, “Hopefully, the rush is abating.”

The rush to withdraw has been attributed to a letter sent to the FDIC by Sen. Charles E. Schumer (D-N.Y.). Schumer expressed concerns that “that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers.”

If this is all it takes for a run on the bank, what does this say about today’s environment? I am sure that similar notes have been sent hundreds of times to the FDIC. Bank failures are likely to increase. I also believe that FDIC will not have enough in its reverse account to pay the depositor insurance.