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Current Events => Breaking News => Topic started by: Wretched Excess on July 11, 2008, 06:38:02 PM

Title: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Wretched Excess on July 11, 2008, 06:38:02 PM

not good news . . . . not good news at all.

Quote
IndyMac Seized by U.S. Regulators Amid Cash Crunch

 July 11 (Bloomberg) -- IndyMac Bancorp Inc. became the second-biggest federally insured financial company to fail today after a run by depositors left the California mortgage lender short on cash.

The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank, starting next week, the Office of Thrift Supervision said in an e-mail today. Customers will have access to funds this weekend via automated teller machines.

The Pasadena, California-based bank specialized in so-called Alt-A mortgages, which didn't require borrowers to provide documentation on their incomes. Its home state has been among the hardest hit by foreclosures.

``Given their focus on Alt-A and a heavy concentration in California, they would have suffered meaningful losses in almost any scenario,'' Brian Horey, president of Aurelian Management LLC in New York, said before the seizure was announced. Aurelian is short-selling IndyMac shares to gain from declines.

IndyMac becomes the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC.

Much more (http://www.bloomberg.com/apps/news?pid=20601087&sid=atyF3ydPUlk8&refer=home)
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Uhhuh35 on July 11, 2008, 07:25:17 PM
Quote
The Pasadena, California-based bank specialized in so-called Alt-A mortgages, which didn't require borrowers to provide documentation on their incomes. Its home state has been among the hardest hit by foreclosures.
Translation= Illegal Aliens.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Wretched Excess on July 11, 2008, 07:35:35 PM
Quote
The Pasadena, California-based bank specialized in so-called Alt-A mortgages, which didn't require borrowers to provide documentation on their incomes. Its home state has been among the hardest hit by foreclosures.
Translation= Illegal Aliens.


not requiring "documentation on their income" could be anybody.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: SemiSpook on July 11, 2008, 08:09:22 PM
Yeah, FULL documentation like I used to get my mortgage. IMB (now IMFB) picked up the note.

The FDIC says that I'm okay, but I'm sort of agitated.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: megimoo on July 11, 2008, 08:44:34 PM
I don't know if you noticed who actually caused the banks failure ?

Feds cite Schumer in collapse of IndyMac

 An important angle in the IndyMac failure that may get lost in ominous headlines tonight and tomorrow: federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank's failure.

In simple language, federal regulators blamed Schumer for a run on the bank.


Here's from the press release issued by IndyMac's regulator, the Office of Thrift Supervision: "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositor's demands in the normal course of business and is therefore in an unsafe and unsound condition.
 
The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York.

The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."

http://latimesblogs.latimes.com/laland/2008/07/feds-cite-schum.html
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Wretched Excess on July 11, 2008, 08:46:36 PM
I don't know if you noticed who actually caused the banks failure ?

Feds cite Schumer in collapse of IndyMac

 An important angle in the IndyMac failure that may get lost in ominous headlines tonight and tomorrow: federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank's failure.

In simple language, federal regulators blamed Schumer for a run on the bank.


Here's from the press release issued by IndyMac's regulator, the Office of Thrift Supervision: "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositor's demands in the normal course of business and is therefore in an unsafe and unsound condition.
 
The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York.

The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."

http://latimesblogs.latimes.com/laland/2008/07/feds-cite-schum.html


outstanding post, megimoo

Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: megimoo on July 11, 2008, 08:58:28 PM
Thank you !
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Jim on July 11, 2008, 09:35:07 PM
sounds like Chuck needs some prison time.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Thor on July 11, 2008, 10:52:10 PM
Quote
The Pasadena, California-based bank specialized in so-called Alt-A mortgages, which didn't require borrowers to provide documentation on their incomes. Its home state has been among the hardest hit by foreclosures.
Translation= Illegal Aliens.


not requiring "documentation on their income" could be anybody.

Actually, Realtors, mortgage brokers, builders, appraisers and many other self-employed people use the "stated income" and No-doc loans. One of the biggest causes of the failure of some of the home loans was/ is the burst real estate bubble.  Many folks that have professions in the real estate business have suffered due to the bubble bursting. No home sales hurts Realtors, mortgage brokers, appraisers and many of the like. I know, because I have personally experienced problems due to the failing real estate market. It hasn't been fun.  :hammer:
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Rebel on July 12, 2008, 02:23:51 PM
Actually, Realtors, mortgage brokers, builders, appraisers and many other self-employed people use the "stated income" and No-doc loans. One of the biggest causes of the failure of some of the home loans was/ is the burst real estate bubble.  Many folks that have professions in the real estate business have suffered due to the bubble bursting. No home sales hurts Realtors, mortgage brokers, appraisers and many of the like. I know, because I have personally experienced problems due to the failing real estate market. It hasn't been fun.  :hammer:

That differs by state.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Miss Mia on July 12, 2008, 03:59:00 PM
I don't know if you noticed who actually caused the banks failure ?

Feds cite Schumer in collapse of IndyMac

 An important angle in the IndyMac failure that may get lost in ominous headlines tonight and tomorrow: federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank's failure.

In simple language, federal regulators blamed Schumer for a run on the bank.


Here's from the press release issued by IndyMac's regulator, the Office of Thrift Supervision: "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositor's demands in the normal course of business and is therefore in an unsafe and unsound condition.
 
The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York.

The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."

http://latimesblogs.latimes.com/laland/2008/07/feds-cite-schum.html



Interesting.  Good post.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: Ptarmigan on July 13, 2008, 12:52:29 PM
I heard about what Schumer did that caused it.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: SemiSpook on July 13, 2008, 05:43:10 PM
Levin was trying to get his staff to call Chuckie's office, and I'm sure a good bit of the listening audience was doing the same.

Those other three points of American polity stated in the Declaration give us the reason to run Schumer's ass out of town on a rail, because it's idiots like him that make it rough for the rest of us.
Title: Re: IndyMac Seized by U.S. Regulators Amid Cash Crunch
Post by: megimoo on July 13, 2008, 07:43:10 PM
Sen. Schumer defends comments on IndyMac collapse

Schumer: IndyMac's failure result of lax regulation, not his recent letter about bank's woes

NEW YORK (AP) -- Sen. Charles Schumer on Sunday defended himself against claims by regulators that he was partially to blame for a run on IndyMac Bancorp Inc. that led to the bank's takeover by the government Friday.

 At a news conference Sunday, the New York Democrat deflected blame cast upon him by regulators for causing a run on the bank that saw depositors withdraw more than $1.3 billion during the 11 days after Schumer released a letter about the possible risks of IndyMac failing.

"The regulator here was asleep at the switch," Schumer said. "The administration is doing what they always do, blaming the fire on the person who called 9-1-1."

Schumer noted his letter in late June provided "no new revelations" about IndyMac, and instead pointed out the bank's problems had been building for years.

"no new revelations" if thats the case why the 'run on the bank' after your letter senator ?

http://biz.yahoo.com/ap/080713/indymac_schumer.html