US Bank IndyMac's assets seized

noirua · 12 July 2008

US Bank IndyMac's assets have been seized by Federal Regulators after the mortgage lender succumbed to the credit crunch and impact of house price falls.

It is the second largest financial institution to close in US history, regulators said.

Government Regulators transferred IndyMac's operations because they did not think the lender could meet its depositors demands.

juw177 · 13 July 2008

And this will not be the last of it. Hopefully this will wake more Americans up to the fact that their government is corrupt and will continue to use their tax dollars to benefit cronies.

As I said elsewhere, socialism for the rich and capitalism for the poor.

Aussiejeff · 13 July 2008

juw177 said:
And this will not be the last of it. Hopefully this will wake more Americans up to the fact that their government is corrupt and will continue to use their tax dollars to benefit cronies.

As I said elsewhere, socialism for the rich and capitalism for the poor.

Et tu, Juw?

This is all starting to look so, so .... Roman-esque!

Remember when Julius's Empire capitalised the Olde World? Then it all started to fall apart? Why?

Ironically, back then it was also the rapidly developing "Middle East and Asian hordes" that had their day for a while too when the Empire was crumbling.....

....and the sands of time keep trickling away....

AJ

Sean K · 13 July 2008

USD is in deep doo doo.

Billion-dollar bailout for US bank
July 13, 2008

FEDERALLY-SEIZED IndyMac Bank is due to reopen tomorrow after suffering one of the biggest bank closures in US history, as the troubled US mortgage industry struggles to stem further meltdown.

The regulatory Office of Thrift Supervision (OTS) announced yesterday it had placed the California-based bank, worth an estimated $US32 billion ($A33.3 billion), under the control of the Federal Deposit Insurance Corporation (FDIC).

The mortgage lender, which will re-open as IndyMac Federal Bank, marked the largest bank failure in a year of mortgage and foreclosure crisis highlighted by a surge in defaults and a plunge in housing prices which are rippling through the US economy.

The FDIC stressed today it was seeking to return the bank to private operation within a few months.

Aussiejeff · 13 July 2008

kennas said:
USD is in deep doo doo.

I wonder which "private" US financial entity(s) might be tempted to buy into the charred, smoking remains of Fed IndyMac?? Sounds like a bargin to moi!!! "Stand back for the stampede of interested parties...." Wot's that I hear coming???? *silence...*

AJ

gfresh · 14 July 2008

US Government Deposit guarantee ensures depositors get $100k of their money back.. if you have more, bad luck..

This is not really receiving as much coverage as it should. Surely some of our local banks would hold some of the toxic IndyMac bonds. No wonder our future fund is being maxed out

dhukka · 15 July 2008

The picture below is a lineup at IndyMac bank at Laguna Woods yesterday. The big question is, who's next? My money is on Washington Mutual, the stock tanked -34% yesterday. But fear not, Washington Mutual is well capitalized. from Bloomberg:

WaMu Says It's `Well Capitalized' After Share Slump
Washington Mutual Inc., after dropping the most since its initial public offering in 1983, said it is ``well capitalized'' with more than $40 billion in liquidity and $150 billion in retail deposits.

But wait a minute, weren't Countrywide Financial (CFC) and Bear Stearns (BSC) well capitalized. This is what CFC said on August 2nd last year:

"Our mortgage company has significant short-term funding liquidity cushions and is supplemented by the ample liquidity sources of our bank," Sieracki continued. "In fact, we have almost $50 billion of highly-reliable short-term funding liquidity available as a cushion today. It is important to note that the Company has experienced no disruption in financing its ongoing daily operations, including placement of commercial paper.

"Countrywide's financial condition remains strong, as evidenced by over $14 billion of net worth, significant excess capital and our strong investment grade credit ratings," Sieracki concluded. "Two independent credit rating agencies, Moody's Investors Service and Standard & Poor's Rating Service, this week re-affirmed their ratings and stable outlook for Countrywide, its bank and its mortgage company."

Bottom line is, you can't trust a word Washington Mutual executives or the executives of any large financial instituions say.

Aussiejeff · 15 July 2008

dhukka said:
The picture below is a lineup at IndyMac bank at Laguna Woods yesterday. The big question is, who's next? My money is on Washington Mutual, the stock tanked -34% yesterday. But fear not, Washington Mutual is well capitalized. from Bloomberg:

But wait a minute, weren't Countrywide Financial (CFC) and Bear Stearns (BSC) well capitalized. This is what CFC said on August 2nd last year:

Bottom line is, you can't trust a word Washington Mutual executives or the executives of any large financial instituions say.

By "well-capitalized" they probably really mean (a) they haven't had a run on their funds by ****** off investors - yet, or (b) the Fed has already whispered in their ears "Don't worry - we'll print some more funny money to help you".

AJ

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