Business Failures

In recent months, some start-up technology companies have died or gone into comas after running out of money, a possible early sign that the resurgence in venture investment may be coming to an end. File123 is counting its days. Edgeio was edged out. TripUp has fallen. BrightSpot went dark. Firebrand flamed out and Ezmo is no more. Industry analysts say this year will bring a big wave of start-up deaths as the credit crisis gripping the financial markets makes investors cautious in other areas.

If you are an IndyMac Bank depositor, you probably have questions about the availability of your funds. Here are some answers: Should I worry about getting my money back? If you have less than $100,000 in your checking, savings and money market accounts or in certificates of deposit, you need not worry. The principal and interest are insured by the FDIC. The bank's 33 branches will be closed over the weekend and reopen Monday. Online and phone banking will also be unavailable until Monday.

The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history. Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: "Please, please, I want to take out a portion." All she could do was read a two-page notice taped to the door.

In a modern financial system, nothing is more frightening than a run on the bank. The U.S. now has suffered through a series of them, and they are escalating in size and scope -- posing a serious threat to the already reeling economy. On Friday, rumors swamped financial markets that the federal government would be forced to step in to aid mortgage-finance giants Fannie Mae and Freddie Mac, which together own or guarantee $5 trillion in U.S. home loans.

How far will the bailout binge go? So far this year, the federal government has put up nearly $30 billion to avert a major financial default by the investment bank Bear Stearns Cos.; committed to investing as much as $200 billion in preferred stock of the loss-plagued finance giants Fannie Mae and Freddie Mac and at least $5 billion in their mortgage securities; and agreed to provide an emergency loan of $85 billion to American International Group Inc.

Before the arrival of Wal-Mart, before the anything-for-a-pound stores, there was always good ol' "Woolies." Children scooped up hard candy from its bins. Homemakers checked out the latest kitchen gadgets. Husbands waited outside. But after 99 years in business, Woolworths, an institution on shopping streets throughout Britain -- and once the U.S. -- is going out of business, a victim of changing times. The company announced Wednesday that its 807 British stores would close their doors by Jan.

The former chief executive of business software firm Peregrine Systems Inc. pleaded guilty Tuesday to three criminal charges for his role in the accounting fraud scheme that bankrupted the company. Stephen Parker Gardner appeared in federal court to change his earlier not-guilty plea on one count each of conspiracy, securities fraud and obstruction of justice.

As mortgage lender New Century Financial Corp. collapsed last week, some of the Irvine company's top salespeople relaxed at scenic Dromoland Castle in Ireland, which boasts that it pampers guests like they were "landed gentry." The trip to Dromoland and other Irish haunts was booked in better days for winners of the firm's President's Club awards.

UC Irvine is pulling out of a satellite orthopedics office in Mission Viejo that school officials say has cost it more than $1 million in lost revenue in 3 1/2 years and closing the residency program at Mission Hospital that the office runs. Dr. Ranjan Gupta, chairman of the UCI orthopedics department, said the university would end its contract with Mission Orthopedic Medical Associates on April 12, about five months early. UCI will shut down the residency program at year's end.

Acknowledging that its proprietary audio technology is a marketplace flop, Sony Corp. is shuttering its Connect digital music store and opening its portable media players to other formats. The moves were announced Thursday at a Berlin consumer electronics trade fair as the Japanese electronics pioneer unveiled a pair of digital Walkmans that can play the Windows Media Audio, MP3 and AAC audio formats. Like rivals' players, including Apple Inc.'