IndyMac Bank Going Down

[SHELLY]

IndyMac appears close to collapse
US regulators may not be ready to protect bank

IndyMac Bancorp Inc. appeared to edge closer to a meltdown Friday as its stock fell to 75 cents a share amid concerns that a collapse could leave the Pasadena-based bank's borrowers and depositors in the lurch.

Sen. Charles Schumer, D-N.Y., says federal regulators may not be ready to protect them and that a wave of IndyMac depositors withdrawing their funds could leave the bank "in a disastrous financial situation."

IndyMac ranks among the 30 largest companies in terms of total annual revenue in the San Gabriel Valley, according to research conducted by this newspaper. In 2007, it employed 10,000 workers and had revenue of $2.8 billion.

A financial collapse could leave scores of employees without jobs. At one point IndyMac employed about 3,000 workers in Pasadena, but that number has shifted several times as the bank has sought to "right-size" its operations.

http://www.pasadenastarnews.com/news/ci_9723222

 

[Bob]

another one bites the dust....

 

[Mango]

They were one of the first with a sophisticated risk based pricing model for Alt A and subprime. I see that worked out well for them. :roll:

 

[scooterbug44]

Aren't their depositors guaranteed by the FICA up to $100K?

Beyond that, I see no reason why WE need to bail out a non-essential business that made $2.8 billion last year.

 

[SHELLY]

Aren't their depositors guaranteed by the FICA up to $100K?

Beyond that, I see no reason why WE need to bail out a non-essential business that made $2.8 billion last year.

Believe it or not, some people actually keep over the FDIC-insured limits in their bank accounts. When NetBank went south last year 1500 accounts contained over their FDIC-insured limits.

.

 

[scooterbug44]

IMO those funds were rightfully forfeit under the "a fool and his money are soon parted" clause!

 

[Andy A]

IMO those funds were rightfully forfeit under the "a fool and his money are soon parted" clause!

Exactly! Or if you are so busy making money, you don't know how much you have or where it is, maybe you are better off without it.

 

[Matt J]

Believe it or not, some people actually keep over the FDIC-insured limits in their bank accounts. When NetBank went south last year 1500 accounts contained over their FDIC-insured limits.

.

IMO those funds were rightfully forfeit under the "a fool and his money are soon parted" clause!

You can also buy insurance to cover over the limit. Some people just assume that a bank will hold out no matter what.

 

[SHELLY]

PADDLES!!!

IndyMac to exit most home lending, slash 3,800 jobs

IndyMac Bancorp, once a leader in the nontraditional home loans that helped drive the housing boom, all but quit the mortgage business Monday and said it would lay off 3,800 people, more than half its staff, in the wake of growing defaults by borrowers.

The Pasadena-based savings and loan became the latest in a series of major Southern California-based lenders that have been absorbed by other companies or have simply been forced to stop making home loans, often shutting down altogether.

In his statement, [CEO] Perry said the company's attempts announced in March to raise capital had been unsuccessful. IndyMac shares, which peaked at $50.11 in May 2006, closed at 71 cents Monday, up 4 cents, before IndyMac's afternoon announcement. In after-hours trading, the stock slid to as low as 47 cents.

http://www.latimes.com/news/printedition/front/la-fi-indymac8-2008jul08,0,954496.story

 

[SHELLY]

Call it!......Time of Death: July 11, 2008

RIP INDYMAC BANK

Regulators Seize Mortgage Lender

Banking regulators seized IndyMac Bancorp, one of the country’s largest mortgage lenders, on Friday evening.

The bank, a star in the subprime era, is the second largest ever to fail and the first major bank to shut its doors since the savings and loan crisis of the 1980s.

The bank collapse came after a frenzied week as IndyMac’s executives tried — and failed — to bolster the bank’s financial footing. The bank, based in Pasadena, Calif., said on Monday that it had stopped making new loans and announced layoffs of more than half of its 7,200 workers. But IndyMac’s customers — afraid their savings might disappear — stampeded tellers, demanding their money back.

“It’s the biggest failure in 24 years,” said Chip MacDonald, a banking lawyer at Jones Day in Atlanta. “You haven’t had a lot of failures of that size, yet.”

http://www.nytimes.com/2008/07/12/business/12indymac.html?ref=business