IndyMac Seized by U.S. Regulators Amid Cash Crunch

[Wretched Excess]

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

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

[Uhhuh35]

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.

[Wretched Excess]

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.

[SemiSpook]

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.

[megimoo]

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

[Wretched Excess]

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

[megimoo]

Thank you !

[Jim]

sounds like Chuck needs some prison time.

[Thor]

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. 

[Rebel]

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. 

That differs by state.

[Miss Mia]

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.

[Ptarmigan]

I heard about what Schumer did that caused it.

[SemiSpook]

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.

[megimoo]

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