IndyMac Bank Going Down
- Thread starter SHELLY
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Gotta like that "yet" part.
Gotta like that "yet" part.
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Gotta like that "yet" part.
...and you can take that to the bank!
``IndyMac is the vanguard, the precursor of more stuff coming,'' said Christopher Whalen, managing director of Institutional Risk Analytics, a market research company in Torrance, California. ``It's not surprising to see IndyMac resolved. What you have to ask is what's coming next. It's going to be a wave of medium to bigger-than-medium institutions.''
The failure will cost the federal deposit insurance program about $4 billion to $8 billion, the FDIC said. Some $1 billion of uninsured deposits are held by about 10,000 customers, the FDIC said. Those depositors will get an ``advance dividend'' equal to half the uninsured amount, according to the statement.
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Gotta like that "yet" part.
Well, RIP IndyMac. In some ways, in the earlier days, they were innovative with their product offerings. They weren't solely a sub-prime Lender, originally starting out more with creative financing and some savvy construction loan programs about 10+ years ago. They were the go to people for those types of loans, and they employed people who had real in depth construction and financing knowledge.
They were always on the forefront of technology too. Then they started getting a little too creative, pushing the card, IMHO, with their offerings. Their technology was top notch back then. All loans went through this sophisticated pricing and underwriting system that spit out responses in seconds and brokers had the ability to print full blown commitments right off their site. Back then, the OTC should have stepped in, and didn't. Technically it wasn't legal to offer a commitment when a loan had not been reviewed by an underwriter. They treated Brokers like they were Banks in a legal sense.
They also got heavily into no doc loans and expanded them to subprime as well. They had a no doc for just about every type of loan, including higher risk construction loans.
As far as another Bank going down in flames similar to IndyMac, I have never seen another Bank with similar assets who did anywhere near what this Bank secured in the way of Alt-A and subprime, But, never say never as far as another failure. It's just that this one, from what I know of it's past history, held it's head above water much longer than I ever anticipated.
Also goes to show you the power of words uttered from politicians and then you have a raid and stampede in the Bank to withdraw funds. Can you imagine being a teller there the last few days.