IndyMac Bank fails ! by rue

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IndyMac Bank fails !

POSTED BY: RUE
UPDATED: Saturday, July 26, 2008 06:22
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Friday, July 11, 2008 3:22 PM

I have a vote and I'm not afraid to use it!

Made you look, didn't I ?

But this time it's for real:

http://www.latimes.com/business/la-fi-indymac12-2008jul12,0,6071779.st
ory

The Pasadena-based thrift's failure is second in size only to the 1984 failure of Continental Illinois Bank.
By Kathy M. Kristof and Andrea Chang, Los Angeles Times Staff Writers
4:48 PM PDT, July 11, 2008
The federal government took control of Pasadena-based IndyMac Bank today, in what regulators called the second-largest bank failure in U.S. history.

The Office of Thrift Supervision in Washington, the chief regulator of IndyMac, said it transferred control of the $32-billion bank to the Federal Deposit Insurance Corp.

Branches will be closed over the weekend, but the FDIC will reopen the bank Monday as IndyMac Federal Bank, the OTS said.

Regulators said depositors would have no access to banking services online and by telephone this weekend, but could continue to use ATMs, debit cards and checks. Online banking and phone banking services are to resume operations Monday.

Federal authorities said based on a preliminary analysis, the takeover of IndyMac would cost the FDIC between $4 billion and $8 billion.

IndyMac's failure had been widely expected in recent days, as regulators said it was not well-capitalized. Its stock has plummeted to mere pennies a share and some nervous depositors have been pulling their funds. The bank has been reeling from losses on defaulted mortgages made at the height of the housing boom.

***************************************************************
"Global warming - it's not just a fact, it's a choice."

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Friday, July 11, 2008 4:32 PM

KWICKO

"We'll know our disinformation program is complete when everything the American public believes is false." -- William Casey, Reagan's presidential campaign manager & CIA Director (from first staff meeting in 1981)

I've got a bad feeling about this...

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Friday, July 11, 2008 4:38 PM

SIGNYM

I believe in solving problems, not sharing them.

People seem to think that the Great Depression happened all at once. That every thing was fine until the stock market crash caught everyone unawares. But the Great Depression really started in some countries as early as 1928. In the USA farm foreclosures increased over a year before the crash. Herbert Hoover thought the stock market represented a bubble, an orgy of speculation. Knowledgeable people argued on both sides of the question even after the market had tanked. And even after that, the economy didn't crash all at once. Unemployment staggered down.

Just because it's happening in slow-mo doesn't mean its gonna be small.

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Let's party like it's 1929.

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Sunday, July 13, 2008 6:44 AM

JAYNEZTOWN

this is getting really ugly

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Sunday, July 13, 2008 7:52 AM

SIGNYM

I believe in solving problems, not sharing them.

I think we'll be extremely fortunate if we manage to miss a depression. We'll know whether the current circumstances are going to snowball into something horrific in the next six - eight months or so.

I didn't adopt my signature line for nothing....

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Let's party like it's 1929.

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Wednesday, July 16, 2008 8:58 AM

CHRISISALL

We've been tellin' them for a while, haven't we?

Toldyaso Chrisisall

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Wednesday, July 16, 2008 9:05 AM

HERO

Quote:
Originally posted by SignyM:
I think we'll be extremely fortunate if we manage to miss a depression. We'll know whether the current circumstances are going to snowball into something horrific in the next six - eight months or so.

Please, this is only the worst economy in 26 years. That means that 27 years ago...it was worse. Since that was 1981, it needs to get worse before its REALLY bad since we know it was FAR worse in the mid to late 1970's and we are nowhere near that level of economic turmoil.

Unemployment remains a third of what it was then. Back then a rate of 10% was considered good for a mortgage...my parents first house was financed at 14%.

This is merely a period of transition. Don't go all panic button folks...your scaring the women.

I note for the record that while the President has some manner of control of the economy...since 1994 the real economic stimulas (and lack thereof) has come from Republican control of Congress (and lack thereof).

H

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Wednesday, July 16, 2008 9:12 AM

CHRISISALL

Quote:
Originally posted by Hero:

Please, this is only the worst economy in 26 years.

You forgot the 'so far'.

My guess- no depression, but a grand recession leading to an entirely different economy with wages across the board being slashed and middle management jobs disappearing.

Prognosticative demon Chrisisall

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Wednesday, July 16, 2008 9:43 AM

JONGSSTRAW

Does anybody think that any other banks are going to fail?

Did this bank really "fail", or did Senator Shumer's memo leak that caused $1.3 billion to be withdrawn actually seal its' fate?

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Wednesday, July 16, 2008 10:23 AM

SIGNYM

I believe in solving problems, not sharing them.

Quote:
Please, this is only the worst economy in 26 years.

What statistic are you using? If you're looking at GNP, we're doing OK. If you're looking at the "misery index"... the percent of unemployment and the percent of inflation added together... not too bad. (except reporting changes make it defficult to compare). But if you're looking at private indebtedness, the Federal deficit, balance of trade and the value of the dollar, we're in historic territory. Same with the rich-poor spread.

The bank problem is more widespread and complicated than previous years, since they sold mortgage-based "structured invproducts" to other banks and financial institutions around the world. So diverse institutions are either going belly-up (IndyMac, Countrywide, Bear Stearns) and other institutions like thrifts (WAMU) and investment banks (UBS, Lehman Bros) are getting hit with writedowns.

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Let's party like it's 1929.

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Wednesday, July 16, 2008 10:30 AM

CHRISISALL

Quote:
Originally posted by Jongsstraw:
Does anybody think that any other banks are going to fail?

Maybe one or two more...wait- that's ALL of them, right?

"You always hear people yapping on how it was all different before the pulse. Land of milk and honey blah, blah, blah, blah with plenty of food and jobs and things actually worked. I was too young to remember, so, whatever... The thing I don't get is why they call it a depression. I mean, everybody's broke...but they aren't really all that depressed. Life goes on."

Maxisall

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Wednesday, July 16, 2008 12:25 PM

SIGNYM

I believe in solving problems, not sharing them.

CHRIS- NICE QUOTE!

BTW, the only other time I thought the dollar was in deep shit was in 1981. Not sure if you remember, but the oil crisis of 1973 caused a huge concentration of dollars in Saudi, UAE, and Kuwaiti banks ("petro-dollars"). Those dollars got recycled into shaky loans to South and Central American governments.

Quote:
By 1981 and 1982 the U.S. crisis became an international crisis with a number of foreign countries unable to make interest and principal payment on their debt. Mexico, Argentina, Venezuela, and some 40 smaller Latin-American and African countries were forced to reschedule their foreign indebtedness to governments and banks.

Unless the lenders accepted the resecheduling, their loans... and their dollars... would have been toast. That's when I first heard the saying If you owe the bank $1000 they own you, if you owe them $1,000,000 you own them" .

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Let's party like it's 1929.

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Thursday, July 17, 2008 9:12 AM

CHRISISALL

In 1981 I wasn't aware of much trouble...too into girl related angst. I remember the gas lines in the late seventies, and wondering when the crude would run out completely though. In the eighties I remember thinking we were all riding on some economic fantasy that would eventually fold in on itself.
Well here it is.

But life WILL go onisall

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Friday, July 18, 2008 11:52 PM

RIVERLOVE

The answer to the energy crisis is to convert to human and animal waste. They're two stable (most of the time) re-usable byproducts that have an endless supply. The world is a big shithole anyhow, so why not exploit the reality.

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Saturday, July 26, 2008 6:22 AM

SIGNYM

I believe in solving problems, not sharing them.

Two more banks, with 28 branches, fail
Quote:
The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators

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Let's party like it's 1929.

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