IndyMac, the First to Fall...

News Type: Event — Seeded on Tue Jul 8, 2008 2:15 PM EDT

Article Source: Bloomberg.com

business, economic-crisis, credit-crisis, fdic, bank-failures, insolvency

IndyMac Bancorp Inc., the lender whose market value has plunged by almost 90 percent this year, will fire half its employees after regulators said the company is no longer ``well capitalized'' and the quarterly loss widened.

IndyMac will slash its workforce by 53 percent to 3,400 employees and curtail lending, the Pasadena, California-based lender said today on its Web site. The company said it is working with regulators on a new business plan.

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7.3

{"commentId":2143237,"authorDomain":"gumwars"}

Gumwars

My prediction? IndyMac won't make it to see 2009...

This could be the first of many bank failures.

{"commentId":2143237,"threadId":"309063","contentId":"1648564","authorDomain":"gumwars"}

1 vote

#1 - Tue Jul 8, 2008 2:16 PM EDT

{"commentId":2151253,"authorDomain":"gumwars"}

Gumwars

This just in, the NYSE has halted trading on IndyMac stock at 13:54 EDT. At 9:54 EDT IndyMac appeared on the REG SHO threshold list, which is the listing used to profile a company that is being attacked by a strategic failure to deliver, or naked short selling of stock. Basically, the hedge funds are moving in to kill this bank. If you have money with IndyMac, it is the author's recommendation that you get your money out now.

Check the timestamp on my comment.

{"commentId":2151253,"threadId":"309063","contentId":"1648564","authorDomain":"gumwars"}

2 votes

#1.1 - Wed Jul 9, 2008 2:14 PM EDT

{"commentId":2170587,"authorDomain":"spookybf"}

Spooky Boyfriend

I was listening to the Friday night news dump to hear that IndyMac has become the second-biggest federally insured financial company to be seized by U.S. regulators who weren't regulating when they should've been.
Bloomberg says this gonna cost the FDIC 4 to 8 billion dollars and that there's about a billion dollars of uninsured deposits held by about 10,000 customers. The FDIC says these depositors will get an "advance dividend'' equal to half the uninsured amount. You can do the math yourself but these 10,000 are going to get their cajones saved by the gub'mint. What exactly does uninsured mean if there is a bail out, even at fiddy cent on a dollah?
.

{"commentId":2170587,"threadId":"309063","contentId":"1648564","authorDomain":"spookybf"}

2 votes

#2 - Fri Jul 11, 2008 9:14 PM EDT

{"commentId":2170791,"authorDomain":"gumwars"}

Gumwars

It is official, IndyMac is toast. The payout the FDIC is on the hook for is bigger than all the bank failures since 1998, combined.

{"commentId":2170791,"threadId":"309063","contentId":"1648564","authorDomain":"gumwars"}

2 votes

#2.1 - Fri Jul 11, 2008 9:57 PM EDT

{"commentId":2171156,"authorDomain":"spookybf"}

Spooky Boyfriend

The gub'mint floated a rumor tonight about taking over Freddie and Fannie; I guess the Fed's got a kinds of money. It must be cool to have the only color copier in the country that can handle that grade of paper.

I wonder what the Chinese and Vladimir think about this?

{"commentId":2171156,"threadId":"309063","contentId":"1648564","authorDomain":"spookybf"}

2 votes

#2.2 - Fri Jul 11, 2008 11:21 PM EDT

{"commentId":2177356,"authorDomain":"Jerry611"}

Jerry Verlinger

You gotta understand what Fannie and Freddie are ...... different than Indy/Mac

And, they can't go down. (Well, actually they can, we'll just have to live through a little depression)

You are right about the regulators being asleep at the switch ..attest to the wonderful leadership we're getting from our number one honcho.

{"commentId":2177356,"threadId":"309063","contentId":"1648564","authorDomain":"Jerry611"}

2 votes

#2.3 - Sun Jul 13, 2008 2:31 AM EDT

{"commentId":2177397,"authorDomain":"gumwars"}

Gumwars

This mess goes all back to the Clinton administration and probably further than that. It takes time and careful planning to create a mess this big. I doubt that seven years of Dubya helped matters, but looking back this got kicked off a long time ago.

{"commentId":2177397,"threadId":"309063","contentId":"1648564","authorDomain":"gumwars"}

2 votes

#2.4 - Sun Jul 13, 2008 2:49 AM EDT

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	IndyMac stops new loans, to cut work force by half	Associated Press	Mon Jul 7	0
	FT.com / Companies / Financial services - IndyMac admits deposit run at 'elevated levels'	FT.com	Tue Jul 8	1

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IndyMac, the First to Fall...

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