Battling rumors that it may collapse, IndyMac Bancorp has acknowledged that its financial position had deteriorated but described the fears as overblown and it was working with regulators to improve its “safety and soundness.”

Pasadena-based IndyMac, a national home lender burned by the mortgage meltdown, went public Monday after depositors lined up at San Gabriel Valley branches starting Friday to pull out their money. Striving to reassure them, the thrift said nearly all their deposits were insured by the Federal Deposit Insurance Corp.

Nonetheless, customers like Elizabeth Brown closed four accounts totaling $200,000 Monday at an Arcadia branch where about 20 customers were lined up at noon, saying: “The only reason I’m panicking is if anything happens, my money is tied up.

The concerns were triggered by Sen. Charles E. Schumer (D-N.Y.), chairman of the Joint Economic Committee, who said in public letters to the FDIC and other bank regulators Thursday that IndyMac “could face a failure if prescriptive measures are not taken quickly.”

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